Nigerian government revenue saved by taxes, as oil revenue hits lowest level in 4 months

The Central Bank of Nigeria (CBN) has revealed that federal government revenue from oil sales has fallen to its lowest level in four months.

CBN said so in its latest monthly economic report obtained by Ripples Nigeria over the weekend.

According to CBN data, gross revenue collected by the federal government stood at 945 billion naira in January, 7.8 percent lower than the 1,024 billion naira budgeted for the period. The gross revenue collected by the federal government is the money earned by the country before it is shared among the three levels of government.

This is different from the federal government’s undistributed revenue, which was 406 billion naira during the same period, 39% below the monthly target of 666 billion naira in the budget.

Oil revenues were the main factor responsible for the revenue underperformance.

Cash from oil sources stood at a paltry 330 billion naira, the lowest since September 2021, when 307.43 billion naira was earned.

This meant that oil revenues were 35% below the monthly target of 506 billion naira in the budget.

The gap between actual government revenue and the budget would have been much larger had it not been for the better-than-expected performance of non-oil revenue.

Non-oil revenue, which mainly consists of corporate taxes, value added tax (VAT) as well as customs and excise duties, totaled N615 billion in January, up 19 percent than the budgeted monthly target of N519 billion and an increase of 47%. compared to January 2021.

A breakdown of the components of oil revenue showed that no revenue was generated from crude oil and gas exports in January, the second month in a row that the government earned nothing from such a major source of revenue. .

No money was recorded for oil and gas exports because the Nigerian National Petroleum Company failed to disburse funds to the common pool of the federation account in recent months, due to increased demands for gasoline subsidies, due to high crude oil prices as well as the decline. oil production.

Revenue from oil profit tax and royalties, which made up the bulk of oil revenue, fell 31% to 247 billion naira from 360 billion naira the previous month and was also below the monthly target of N277 billion.

Also read: CBN issues final guidelines for bank fundraising centers

While oil revenues were hit, all major segments of the non-oil sector recorded double-digit growth year-on-year and exceeded their prorated monthly targets.

Corporate income tax (IRS), customs and excise duties and VAT all increased by 44%, 47% and 17% respectively compared to the same period last year, revenue from VAT contributing the most in cash.

VAT revenue totaled N201 billion, while corporate tax and customs and excise duties amounted to N152 billion and N132 billion respectively.

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