A Review of the Nigerian Energy Industry

Nigeria’s revenue drops 4.2% in Q3 – CBN

Central_Bank_Governor__Mallam_Lamido_Sanusi__Punch_23 November 2013, Abuja – Earnings by the Federal Government slipped by 4.2 per cent to N2.71 trillion in the third quarter ended September, a Central Bank of Nigeria (CBN) Economic Report released yesterday has shown.

The report showed that the figure fell below budget estimate for the quarter and the corresponding period of last year. However, relative to the level in the preceding quarter, total revenue rose by 14.4 per cent

Of the revenues, the CBN said N1.62 trillion came from gross oil receipts, which constituted 59.7 per cent of the total. Also, the oil earnings slumped below the proportionate budget estimate and the level in the preceding quarter by 16.1 and 10.5 per cent, respectively.

It said the development, relative to the preceding quarter, was due to the decline in most of the components of oil revenue during the quarter under review.

Other non-oil receipts stood at N1.09 trillion, and were about 40 per cent of the total earnings. It was also above the proportionate budget estimate and the level in the preceding quarter by 21.3 and 95.3 per cent, respectively.

The increase in non-oil revenue relative to the preceding quarter reflected, largely, the rise in receipts from corporate tax, independent revenue of the Federal Government, education tax and customs levies

It said as a percentage of projected third quarter 2013 nominal Gross Domestic Product (GDP), oil and non-oil revenue were 13.6 and 9.2 per cent, respectively.

Of the gross federally-collected revenue as at September, N1.61 trillion (after accounting for all deductions and transfers) was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund.

According to the report, the Federal Government received N769.83 billion, while the states and local governments received N390.47 billion and N301.03 billion, respectively. The balance of N150.22 billion went to the 13 per cent Derivation Fund for distribution to the oil-producing states.

Also, the Federal Government received N27.99 billion from the Value Added Tax (VAT) Pool Account, while the states and local governments received N93.31 billion and N65.32 billion, respectively.

The sum of N106.65 billion was also distributed as the Subsidy Re-Investment and Empowerment Programme (SURE-P) among the three tiers of government and the 13 per cent Derivation Fund as follows: Federal Government (N48.88 billion), State Governments (N24.79 billion), Local Governments (N19.11 billion) and 13 per cent Derivation Fund (N13.86 billion).

It said the Federal Government retained revenue for the third quarter stood at N964.86 billion which was lower than the proportionate budget estimate by 21.3 per cent, but exceeded the receipts in the preceding quarter and the corresponding quarter of 2012 by 9.0 and 9.2 per cent, respectively.

Of this amount, the Federal Government share from the Federation Account, VAT Pool Account, FGN Independent Revenue and Sure-P were N769.83 billion, N27.99 billion, N118.16 billion and N48.88 billion, respectively

Total estimated expenditure for the third quarter 2013 stood at N1.07 trillion, indicating a decline of 25.5 and 6.1 per cent below the quarterly budget estimate and the level in the preceding quarter, respectively.

The development relative to the quarterly budget estimate was attributed to the decline in both recurrent and capital components during the period.

A breakdown of the total expenditure showed that the recurrent component accounted for 69.5 per cent, while capital and statutory transfers components accounted for 24.0 and 6.5 per cent, respectively.

Further breakdown of the recurrent expenditure showed that the non-debt component accounted for 79.0 per cent, while debt service payments accounted for the balance of 21.0 per cent.

“Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N114.05 billion or 0.95 per cent of GDP, compared with a proportionate budget deficit of N221.77 billion or 1.9 per cent of GDP for the third quarter 2013,” it said.

– The Nation

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