A Review of the Nigerian Energy Industry

FG’s revenue drive yielded N806bn in April, says CBN

07 July 2013, Abuja – Latest data from the Central Bank of Nigeria, CBN, has put the total federally-collected revenue for the month of April at N805.91 billion.

The figure, which was contained in the bank’s Economic Review for the Month of April, however, fell below the provisional monthly budget estimate by 14.7 per cent but exceeded the receipt in the preceding month by 2.0 per cent.

At N620.97 billion, oil receipts (gross), which constituted 77.1 per cent of the total revenue was, below the provisional monthly budget estimate by 3.7 per cent but surpassed the level in the preceding month by 4.3 per cent.

The decline relative to budget estimate was attributed largely to the fall in receipts from crude oil and gas exports in the review period.

The report also showed that non-oil receipts (gross), which stood at N184.94 billion or 22.9 per cent of the total, was lower than both the monthly budget estimate and the level in the preceding month by 38.5 and 5.0 per cent respectively.

According to the CBN, the decline relative to the monthly budget estimate largely reflected the low receipts from Corporate Tax, Customs and Excise Duties and Independent Revenue of the Federal Government.

The Federal Government’s estimated retained revenue was N323.96billion in April 2013, while total estimated expenditure was N374.43billion. Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N50.47billion, compared with the estimated monthly budget deficit of N73.92billion.

“The predominant agricultural activities during the month of April 2013 were planting of root crops and harvesting of tree crops and fruits. In the livestock sub-sector, farmers re-stocked to replenish broilers and layers sold during the Easter festive season.

“Crude oil production was estimated at 1.97 million barrels per day (mbd) or 59.10 million barrels during the month.
The end -period inflation rate for April 2013, on a year-on-year basis, was 9.1 per cent, 0.5 percentage point above the level in the preceding month. The inflation rate on a 12-month moving average basis was 11.1 per cent, compared with the preceding month’s level of 11.4 per cent.”

The monthly report also indicated that foreign exchange inflow and outflow through the CBN in April 2013 were $3.24billion and $3.32billion, respectively, and resulted in a net out flow of $0.08billion.

“Foreign exchange sales by the CBN to the authorised dealers amounted to US$2.54billion, showing an increase of 12.7percent above the level in the preceding month.

“Relative to the level in the previous month, the average naira exchange rate vis-à-vis the US dollar remained unchanged at N157.31/US$ at the WDAS segment of the market.

“It, however, depreciated at the bureau –de –change, but appreciated at the interbank segment of the foreign exchange market,” the report said.

Also within the period under review, non-oil export receipts decreased significantly by 54.4 per cent above the level in the preceding month. This was attributed largely to the decline in receipts from all sectors except the transport sector.

Throwing light on the flow of credit to the economy, the report said at N15, 885. 3billion, aggregate banking system credit (net) to the domestic economy at the end of April 2013 rose by 3.0per cent, on month-on-month basis, compared with the growth of 2.8 per cent at the end of the preceding month.

The development is said to have largely reflected the 210.9 per cent increase in (net) claims on the Federal Government.

The report also has it that over the level at end-December 2012, aggregate banking system credit (net) to the domestic economy rose by 15.3 per cent, due largely to the significant increase of 135.3 per cent in net claims on Federal Government.

In specific terms, banking system’s credit (net) to the Federal Government, on month –on -month basis, was said to have increased by 210.9 percent to N477.1billion, compared with the growth of 261.5 per cent at the end of the preceding month, but in contrast to the decline of 78.1 per cent at the end of the corresponding month of 2012.

The development, relative to the preceding month, was attributed to the increase in the banking system’s holding of government securities.

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