CBN: Nigeria’s revenue from oil sector dropped by 60 percent to N308bn in Germany

Report has shown that Nigeria’s revenue from the oil sector dropped by 60 per cent to N308.07 billion in February 2023.

According to the Central Bank of Nigeria Monthly Economic Report, MER, on Thursday, the Country’s revenue from the oil sector slipped from N774.15 billion in January to N308.07 billion in February.

The trend worsened with a similar drop in non-oil revenue, with a 3.7 per cent decline to N730.2 billion during the period.

As a result, revenue accruing to the Federation Account in February declined 32.3 per cent in February, the report stated.

“At N1.038 trillion, federation receipts were below the level in January by 32.3 per cent. Similarly, it was below the budget of N1.580 trillion by 34.3 per cent.

“The decline relative to January was attributed to a fall in collections from Petroleum Profit Tax and Royalties. At N308.07 billion, oil revenue was 60.2 per cent below receipts in the preceding month.

“The outcome was largely driven by the 60.5 per cent decrease in collections from Petroleum Profit Tax and Royalties. Similarly, at N730.21 billion, non-oil revenue was below the level in the preceding month and the monthly target by 3.7 per cent and 7.4 per cent, respectively.

“The decrease was primarily attributed to the 10.5 per cent decline in collections from corporate tax due to the seasonality associated with its payments.

At N478.57 billion, retained revenue of FGN was below the level in January and the proportionate budget by 7.7 per cent and 42.4 per cent, respectively.

“Provisional aggregate expenditure increased due to the rise in recurrent and capital expenditures. Consequently, the provisional aggregate expenditure of FGN at N991.62 billion rose by 5.9 per cent relative to the level in January and was 31.3 per cent below the monthly target.

“A breakdown of the expenditure reveals that recurrent expenditure, capital expenditure, and transfers accounted for 84.7 per cent, 9.5 per cent and 5.8 per cent of total expenditure, respectively.

At N513.05 billion, the provisional fiscal deficit of the FGN rose by 22.8 per cent relative to the preceding month.

“However, it was 16.2 per cent below the budget benchmark,” the report stated.