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FG’s revenue drops to N743.57billion in October

By BusinessNews Staff on December 25, 2014

The federally-collected revenue stood at N743.57 billion in October 2014, lower than both the monthly budget estimate and the receipts in the preceding month by 18 per cent and 10.6 per cent, respectively.
The Central Bank of Nigeria (CBN) revealed this in its monthly economic report for October obtained on Tuesday.

The decline relative to the monthly budget estimate was largely attributed to the shortfall in receipts from oil revenue during the review month.

Also, at N470.04 billion, gross oil receipts, which constituted 63.2 per cent of the total revenue, was lower than both the monthly budget estimate and the preceding month by 21.3 and 14.1 per cent, in that order. Similarly, the decline in oil receipts relative to the monthly budget estimate was also attributed to fall in receipts from crude oil and gas exports due to the fall in the price of crude oil in the international market.
In addition, it stated that at N273.54 billion, gross non-oil receipts during the month, constituted 36.8 per cent of the total revenue and was lower than the monthly budget estimate and receipts in the preceding month by 11.5 and 3.9 per cent, respectively.

However, the decrease in non-oil revenue relative to the monthly budget estimate reflected largely, the fall in receipt from corporate tax and customs/excise duties.

According to the report, with a total of N16.408 trillion, aggregate banking system credit (net) to the domestic economy grew by 0.9 per cent, on month-on-month basis, as at the end of October, compared with the
growth of 2.7 per cent recorded at the end of the preceding month.

“The development relative to the preceding month reflected the growth of 0.9 and 0.7 per cent in net claims on the federal government and claims on the private sector. Over the level at end- December 2013, net domestic credit grew by 9.1 per cent.

“Banking system’s credit (net) to the federal government, on month-on-month basis, rose by 0.9 per cent to negative N1. 380 trillion at end-October, 2014, compared with the growth of 10.4 per cent at the end of the preceding month.

“The development relative to the preceding month was attributed to the increase in banking system’s holdings of government securities,” it added.

Furthermore, the report stated that compared with the level at the end of December 2013, claims on the federal government (net) rose by six per cent.

However, the federal government, as in the preceding month, remained a net lender to the banking system at the end of the review month.

“At N1.534 trillion, currency-in-circulation declined by 0.9 per cent, on month-on-month basis, in contrast to the growth of 3.1 per cent recorded at the end of the preceding month.

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