Nigeria generates N2.6trn in Q2 2014

14 October 2014, Abuja – The total federally-collected revenue in the second quarter of 2014 stood at N2.602 trillion, according to a report by the Central Bank of Nigeria, CBN.

The central bank’s economic report for the second quarter of 2014, obtained monday, showed that the amount represents an increase of 4.3 per cent above the level in the preceding quarter.

Central-Bank-of-Nigeria-CBNIt, however, declined by the same margin when compared with the proportionate quarterly budget estimate. The development relative to the quarterly budget estimate was attributed to the fall in non-oil revenue.

Also, at N1.795 trillion, gross oil receipts, which constituted 69 per cent of the total fell by 0.7 per cent, below the receipts in the preceding quarter, but rose marginally by 0.2 per cent above the proportionate budget estimate.

The development relative to the budget estimate was attributed, largely, to the increase in other oil revenue during the quarter under review.

According to the report, non-oil receipts (gross), at N806.45 billion (31.0 per cent of the total), fell below the proportionate budget estimate by 13.1 per cent, but rose above the level in the first quarter of 2014 by 17.4 per cent.

Furthermore, the report pointed out that the decline in non-oil revenue relative to the proportionate budget estimate was, due largely, to the decline in receipts from Education Tax and FGN Independent revenues.

“Of the gross federally-collected revenue during the review quarter, the sum of N1,625.88 billion (net deductions and transfers) was transferred to the Federation Account for distribution among the three tiers of government and the 13.0 per cent derivation fund.

“The federal government received N769.48 billion, while the state and local governments received N390.29 billion and N300.90 billion, respectively. The balance of N165.20 billion went to the 13 per cent derivation fund for distribution among the oil-producing states,” it added.

Meanwhile, provisional data indicated that growth in the key monetary aggregate was sluggish at the end of the second quarter of 2014. Developments in banks’ deposit and lending rates were mixed during the review quarter. The value of money market assets outstanding increased, due largely, to the rise in FGN Bonds. Developments in the Nigerian Stock Exchange (NSE) were mixed.

Provisional data indicated that growth in the key monetary aggregate was sluggish at the end of the second quarter of 2014. Relative to the level at the end of the first quarter of 2014, broad money supply, (M2), grew by 1.5 per cent to N15.928 trillion compared with the 0.2 per cent at the end of the preceding quarter, but contrasted with the 0.5 per cent decline at the end of the corresponding quarter of 2013.

The development relative to the preceding quarter reflected, largely, the respective growth of 1.1 and 4.5 per cent in foreign assets (net) and other assets (net) of the banking system, which more than offset the effects of the 1.1 per cent decline in net domestic credit.
*Obinna Chima – Thisday

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