In February 2023, Nigeria’s oil-related revenue dropped by 60% to N308.07 billion. According to the Monthly Economic Report, or MER, released on Thursday by the Central Bank of Nigeria, the country’s oil-related earnings decreased from N774.15 billion in January to N308.07 billion in February. Similar declines in non-oil revenue, which dropped 3.7% to N730.2 billion over the period, made the trend worse.
As a result, revenue accruing to the Federation Account in February declined 32.3 per cent in February, the report stated.
“At N1.038 trillion, federation receipts were below the level in January by 32.3 per cent. Similarly, it was below the budget of N1.580 trillion by 34.3 per cent.
“The decline relative to January was attributed to a fall in collections from Petroleum Profit Tax and Royalties. At N308.07 billion, oil revenue was 60.2 per cent below receipts in the preceding month.
“The outcome was largely driven by the 60.5 per cent decrease in collections from Petroleum Profit Tax and Royalties. Similarly, at N730.21 billion, non-oil revenue was below the level in the preceding month and the monthly target by 3.7 per cent and 7.4 per cent, respectively.
“The decrease was primarily attributed to the 10.5 per cent decline in collections from corporate tax due to the seasonality associated with its payments.
“At N478.57 billion, retained revenue of FGN was below the level in January and the proportionate budget by 7.7 per cent and 42.4 per cent, respectively.
“Provisional aggregate expenditure increased due to the rise in recurrent and capital expenditures. Consequently, the provisional aggregate expenditure of FGN at N991.62 billion rose by 5.9 per cent relative to the level in January and was 31.3 per cent below the monthly target.
“A breakdown of the expenditure reveals that recurrent expenditure, capital expenditure, and transfers accounted for 84.7 per cent, 9.5 per cent and 5.8 per cent of total expenditure, respectively.
“At N513.05 billion, the provisional fiscal deficit of the FGN rose by 22.8 per cent relative to the preceding month.
“However, it was 16.2 per cent below the budget benchmark,” the report stated.
