Nigeria’s gross revenue collection recorded an N1.46trillion deficit in the first quarter of 2020. This deficit is against the budget estimate of N3.95tn projected by the country.
This was disclosed by the Central Bank of Nigeria, CBN in its quarterly Federation Account Operations report.
“At N2.53tn, federally-collected revenue, in the first quarter of 2020, was lower than the quarterly budget estimate of N3.95tn by 36 percent. Similarly, it fell below the receipt in the preceding quarter by 4.8 percent. The decline in federally-collected revenue (gross), relative to the quarterly budget estimate, was attributed to shortfalls in the receipt from both oil and non-oil revenue components during the review period” the report said.
Gross oil receipt, at N1.52tn or 60.3 percent of the total revenue, was below the quarterly budget estimate and the receipt in the preceding quarter by 31.2 percent and 2.6 percent respectively.
The decline in oil revenue, relative to the quarterly budget estimate, was due to shortfall in the receipt from Petroleum Profit Tax, PPT, and royalties.
Non-oil revenue (gross), at N1tn or 39.7 percent of total revenue, fell below the quarterly budget estimate of N1.73tn by 42.1 percent. It also fell below the level in the preceding quarter by eight percent.
The lower non-oil revenue, relative to the quarterly budget estimate, was due to the decline in the receipt from VAT and corporate tax.
After the statutory deductions and transfers of N523.69bn and N479.1bn respectively, a net sum of N1.52tn was retained in the federation account for distribution.
Of this amount, the Federal Government received N729.63bn, state and local governments received N370.08bn and N285.32bn respectively, while the balance of N139.47bn was transferred to the 13 percent derivation fund for distribution among the oil-producing states.
In addition, the Federal Government received N44.52bn, while the state and local governments received N148.39bn and N103.87bn respectively from the VAT pool account.
Also, the sum of N18.17bn was shared as exchange gain in the following proportion. The Federal Government got N8.35bn; state governments got N4.23bn and local governments got N3.27bn.
The report added that there was a 13 percent derivation fund of N2.32bn.
