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Nigeria’s federally collected revenue increases in February 2017 due to improved oil receipts, according to Central Bank of Nigeria’s economic report
| By Anayo Ezugwu | May 29, 2017 @ 01:00 GMT |
THE Central Bank of Nigeria’s, CBN, economic report for February 2017 has shown that the country’s gross federally-collected revenue rose by 20.4 percent in February 2017 to N545.05 billion, as against the N433.86 billion recorded in January 2017. The increase relative to the preceding month level was attributed to the rise in receipts from both oil and non-oil components.
According to the report, the revenue receipt recorded in February fell short of the 2017 provisional monthly budget estimate of N792.71 billion by 31.2 percent,. The gross oil receipts stood at N292.82 billion or 53.7 percent of total revenue fell below the provisional monthly budget estimate by 0.6, but was 37.9 percent higher than the receipts in January 2017. The increase in oil revenue relative to the preceding month reflected the significant rise in receipts from domestic crude oil/gas sales and PPT/Royalties.
The report stated that at N252.24 billion or 46.3 percent of the total revenue, gross non-oil revenue was below the 2017 provisional monthly budget estimate of N498.14 billion by 49.4 percent. It, however, exceeded the receipts in January 2017 by 4.9 percent. The poor performance relative to the provisional budget reflected the shortfall in most of the components due to the low economic activities in the country during the review period.
The estimated federal government retained revenue for the month of February 2017, at N194.38 billion, was below the 2017 provisional monthly budget estimate of N337.48 billion and the receipts in January 2017 by 42.4 percent and 5.9 percent, respectively. Of the total receipt, federation account accounted for 68.5 percent, while Exchange Gain, FGN Independent Revenue, VAT, Excess Crude, and NNPC refund accounted for 11.6 percent, 6.5 percent, 5.4 percent, 4.7 percent and 3.3 percent, respectively.
Similarly, the estimated total expenditure of the federal government, at N599.30 billion, exceeded both the 2017 provisional monthly budget estimate of N522.64 billion and January 2017 level of N552.74 billion by 14.7 and 8.4 percent, respectively. Recurrent and capital expenditure, accounted for 64.9, and 30.5 percent, respectively, while transfers accounted for the balance of 4.6 percent of the total expenditure.
A breakdown of the recurrent expenditure showed that non-debt obligation was 79.3 percent of the total while debt service payments accounted for the balance of 20.7 percent. Increased domestic crude oil production recorded in the last two months continued in the review month as government and other stakeholders sustained effort at curtailing vandalism in the Niger-Delta region.
Consequently, Nigeria’s crude oil production, including condensates and natural gas liquids stood at an average of 1.65 million barrel per day, mbd, or 46.2 million barrels in February 2017. This represented an increase of 0.08 mbd or 5.10 percent over the average of 1.57 mbd or 48.67 million barrels, mb, recorded in January 2017.
Crude oil export was estimated at 1.20 mbd or 33.60 mb, representing an increase of 7.14 percent, compared with 1.12 mbd or 34.72 mb recorded in the preceding month. Allocation of crude oil for domestic consumption remained at 0.45 mbd or 12.60 mb during the review period.
Furthermore, the report showed that the external sector marginally strengthened in February 2017 following the increase in domestic oil production and international crude oil prices as well as improved inflow through autonomous sources. Increase in crude oil prices followed the deal reached by the Organisation of Petroleum Exporting Countries, OPEC, members to cut production. However, foreign exchange supply shortages continued to constrain import of raw materials which suppressed domestic production. Consequently, non-oil export receipts declined in the review period.
Also, foreign exchange inflow through the CBN, at US$2.37 billion, fell by 8.9 percent, relative to the level in the preceding month, but was 94.4 percent above the level in the corresponding period of 2016. The development reflected the significant decline in non-oil receipts due to lack of interbank swap transactions and fall in Treasury Single Account and third party receipts during the review month.
On the other hand, aggregate outflow through the CBN, at US$0.98 billion, declined by 7.3 percent and 4.6 per cent below the levels in the preceding month and the corresponding period of 2016, respectively. The development was attributed to the decline in drawings on Letters of Credits, LCs, external debt service, foreign exchange special payment, NSA, other official payments and 3rd party MDA transfers. Overall, a net inflow of US$1.40 billion was recorded, compared with US$1.55 and US$0.20 in January 2017 and the corresponding period of 2016, respectively.
Total non-oil export earnings, at US$0.31 billion, fell by 7.0 percent, below the level in January 2017. This resulted from the 50.0 percent, 41.6 percent, 36.4 percent and 32.3 percent decline in receipts from transport, food products, agricultural and industrial sub-sectors, respectively. The manufactured product and minerals sub-sector, however, grew by 209.8 percent and 5.0 percent, respectively, above the levels in the preceding month to US$60.28 million and US$135.13 million.”
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