FG Generated N6.6 Trillion in 8 Months

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The federal government generated a total of N6.611 trillion between January and August 2013, a report has shown.

However, the amount represented a decline by 12.5 and 10.7 per cent below the budget estimate for the period and the receipts in the corresponding period of 2012, respectively.

Of this amount, oil receipts represented 71.9 per cent, while non-oil receipts accounted for the balance of 28.1 per cent, the report added.

According to the Central Bank of Nigeria (CBN) economic report for August 2013, the total gross federally-collected revenue in the month under review was N760.29 billion.

The CBN economic report for August, which was posted on the regulator’s website yesterday, showed that the amount generated in August reflected a decline by 19.5 per cent and 27.6 per cent below the monthly budget estimate and the receipts in the preceding month, respectively.

The decline relative to the level in the preceding month was attributed to the fall in oil revenue in August. At N457.23 billion, it stated that gross oil receipts, which constituted 60.1 per cent of the total revenue, fell below both the receipts in the preceding month and the monthly budget estimate by 29.2 and 29.1 per cent, respectively.

The development relative to the preceding month was attributed, largely, to the shortfall in receipts from exports and other oil revenue during the period.

“At N303.06 billion, gross non-oil receipts, constituted 39.9 per cent of the total and was 0.9 per cent above the monthly budget estimate. This was however lower than the level in the preceding month by 25.1 per cent. The increase in non-oil revenue relative to the receipts in the preceding month reflected, largely, the rise in receipts from corporate and education taxes,” it added.

Of the gross federally-collected revenue in August, N477.05 billion was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent Derivation Fund. The federal government received N227.52 billion, while the states and local governments received N115.40 billion and N88.97 billion, respectively. The balance of N45.17 billion went to the 13 per cent Derivation Fund for distribution by the oil-producing states.

Meanwhile, it showed that at N1.443 trillion, currency-in-circulation, on month-on-month basis, declined by one per cent in the review month, in contrast to the increase of 2.2 and 0.4 per cent at the end of the preceding month and the corresponding period of 2012, respectively.

The development relative to the preceding month reflected the fall in currency outside banks and vault cash, respectively.

“The introduction of 50 per cent CRR on all public sector deposits in August 2013 precipitated volatilities in most financial market indicators,” it added.