The Central Bank of Nigeria (CBN) says revenue generated by the federal government in January dropped to N807.54 billion.According to the apex bank’s monthly economic report, said this represents a decline of 12.8 per cent when compared to the corresponding month in 2020.
The report noted that the revenue fell below its benchmark, owing to the decline in non-oil receipts, which resulted from the lingering effects of the COVID-19 pandemic on business activities and shortfall in tax revenue.
It said oil revenue contributed 45.4 percent while non-oil revenue made up 54.6 percent of the generated revenue in the month.
“Federally collected revenue in January 2021 was N807.54 billion. This was 4.6 per cent below the provisional budget benchmark and 12.8 per cent lower than the collection in the corresponding period of 2020,” the report said.
“Oil and non-oil revenue constituted 45.4 per cent and 54.6 per cent of the total collection, respectively. The modest rebound in crude oil prices in the preceding three months enhanced the contribution of oil revenue to total revenue, relative to the budget benchmark.
“Non-oil revenue sources underperformed, owing to the shortfalls in collections from VAT, Corporate Tax, and FGN Independent revenue sources. Retained revenue of the Federal Government of Nigeria (FGN) was lower-than-trend due to the lingering effects of the COVID-19 pandemic.”
The report noted that the federal government expenditure grew from N717.60 billion in December 2020 to N770.77 billion in January. It added that a fiscal deficit of N485.51 billion was recorded in the month under review.
Foreign exchange outflow through the economy also fell by 22.1 percent and 57.1 percent to $2.97 billion, from the levels of $3.81 billion and $6.92 billion respectively in the preceding month and the corresponding month of 2020.
“At N285.26 billion, FGN’s retained revenue fell short of its programmed benchmark and collections in January 2020, by 41.3 per cent and 7.5 per cent, respectively,” the report added.
“In contrast, the provisional aggregate expenditure of the FGN rose from N717.60 billion in December 2020 to N770.77 billion in the reporting period, but remained 14.4 per cent below the monthly target of N900.88 billion.
“Fiscal operations of the FGN in January 2021 resulted in a tentative overall deficit of N485.51 billion.”