Gross revenue rises 10.4 percent despite decline in non-oil revenue: CBN

*The Central Bank of Nigeria’s monthly report for October 2021 indicated the gross revenue increased by 10.4 percent m/m to N942.3billion in the month last year, and was eight percent lower than the pro-rata monthly budget

Isola Moses | ConsumerConnect

The Central Bank of Nigeria’s (CBN) monthly report for October 2021 has indicated some improvements in the country’s gross revenue, supported by strong oil revenue.

It was gathered the CBN report showed gross revenue rose by 10.4 percent m/m to N942.3billion October last year, and was eight percent lower than the pro-rata monthly budget.

According to the apex bank, out of the gross amount, the Federal Government’s retained revenue was N331.6billion, c.50 per cent below its programmed benchmark.

The Federal Government had an ambitious revenue target of N7.99trillion in 2021, with a significant projected deficit of N5.6trillion.

Total non-oil revenue saw a m/m decline of 13 percent m/m to N474billion in October ’21 and was nine per cent lower than the pro-rata monthly budget.

Acording to the report, the decline in non-oil revenue was attributed to declines in all major components, including the Company Income Tax (CIT), Customs and Excise duties, Value-Added Tax (VAT), and Federal Government of Nigeria (FGN) independent revenue.

The largest decline was recorded in FGN independent revenue, which saw a 45 percent m/m reduction, followed by customs and exercise duties, which recorded a 21 percent m/m decline.

It also noted the Value Added Tax represented 36 percent of the total non-oil revenue collected in the reference month.

The period as well witnessed a four percent m/m decline and a 20 per cent y/y increment. CIT, customs and excise duties, FGN independent revenue and others accounted for 32 per cent, 25 percent, six percent and one percent of total non-oil revenue respectively.

On the other hand, oil revenue rose by 52.5 percent m/m to N468.7 billion but fell short of the budget benchmark by seven per cent.

Crude oil closed October 2021 at $84/b, compared with the government’s budget assumption of $40.

In comparison to the 1.86 million barrels per day (mbpd) envisaged in the budget, crude oil output was put at 1.4mbpd in October 2021 by OPEC (based on secondary sources).

Recall that the Honourable Minister for Finance, Bueget and National Planning had disclosed in the approved 2022 Federal Budget presentation that as of November last year, aggregate non-oil tax revenues totalled N1.6trillion.