Sliding oil prices cut govt’s revenue by 9.8 per cent

Oil workers, member sof PENGASSAN. Photo: naij

Oil workers, member sof PENGASSAN. Photo: naij

A federally collected revenue of N735.07 billion was recorded in April, representing a shortfall of 9.8 per cent of the monthly budget estimate. This was, however, higher than the receipt in the preceding month by 35.8 per cent.

The decline in estimated federally-collected revenue (gross) relative to the monthly budget estimate was attributed largely to the shortfall in receipts from oil revenue during the month under review.

The Central Bank of Nigeria (CBN), which made this disclosure in its monthly report released on Monday, added that at N286.24 billion, oil receipts (gross), which constituted 38.9 per cent of total revenue, was lower than the receipts in the preceding month and the corresponding period of 2014, by 21.5 and 54.0 per cent respectively.

It attributed the fall in oil receipts relative to the level in the preceding month to the decline in revenue from crude oil and gas exports, occasioned by the drop in the prices of the commodities in the international market.

Besides, N33.53 billion and N9.49 billion were distributed as foreign exchange gains, together with Nigerian National Petroleum Corporation ( NNPC ) additional revenue, among the three tiers of government and the 13 per cent Derivation Fund .

The report stated that the Federal Government received N15.37 billion and N4.35 billion, while the states and local governments got N7.79 billion and N2.21 billion; and N6.01 billion and N1.70 billion respectively. The balance of N4.36 billion and N1.23 billion was distributed to the oil- producing states as 13 per cent derivation fund.

It stated: “Non-oil receipts (gross), at N448.83 billion or 61.1 per cent of the total, was 154.1 and 150.4 per cent higher than the receipts in the preceding month and the corresponding month of 2014, respectively. The development reflected, largely, the rise in receipts the Federal Government independent revenue.

“Federal Government’s estimated retained revenue in April 2015 was N452.38 billion, while total estimated expenditure was N155.52 billion. Thus, the fiscal operations of the Federal Government resulted in an estimated surplus of N296.86 billion.

“The dominant agricultural activities in April 2015 were planting activities following early rains and harvesting of cassava in the Southern States; and preparation of land for the forth-coming cropping season and harvesting of vegetables in the Northern States.

“Crude oil production, including condensates and natural gas liquids in April 2015 was estimated at 1.91 million barrels per day (mbd) or 57.30 million barrels for the month.

“Crude oil export was estimated at 1.46 million barrels per day (mbd) or 43.80 million barrels during the month. The average price of Nigeria’s reference crude, the Bonny Light (370 API), was estimated at US$59.55 per barrel, indicating an increase of 3.7 per cent above the level in the preceding month.

“The end-period headline inflation rate (year-on-year), in April 2015, was 8.7 per cent, compared with 8.5 per cent in the preceding month. Inflation rate on a 12-month moving average basis remained at 8.2 per cent, same as in the preceding month.

“Foreign exchange inflow and outflow through the CBN in April 2015 was US$2.88 billion and US$2.55 billion, respectively, and resulted in a net inflow of US$0.33 billion. Foreign amounted to US$2.39 billion, showing a decline of 14.9 per cent below the level in the preceding month.

“Relative to the level in the preceding month, the average naira exchange rate vis-à-vis the US dollar appreciated at both the bureau-de-change and interbank segments of the market. Non-oil export receipts declined by 51.3 per cent below the level in the preceding month.

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