Nigeria’s total revenue from crude oil rose by 29 percent to N7.3 trillion in 2017, reflecting impact of increases production and in crude oil price. The revenue from oil represented 69 percent of the total federation revenue, which rose by 22 percent to N10.6 trillion in 2017. However, the deficit spending by the federal government rose by 22 percent to N2.7 trillion during the year.
This was disclosed by the Central Bank of Nigeria (CBN) in its Economic Report for the fourth quarter of 2017 released yesterday. Vanguard analysis of the report showed that oil revenue into the federation account rose to N7.34 trillion in 2017, from N5.68 trillion in 2016. Non-oil revenue also grew by 17 percent to N3.24 trillion in 2017 from N2.98 trillion in 2016. The CBN report however showed decline in oil and non-oil revenue in the fourth quarter of 2017.
The report stated: “Federally-collected revenue in the fourth quarter of 2017, at N2,040.59 billion, was lower than the proportionate quarterly budget estimate of N2,684.28 billion by 24.0 per cent. It was also below the receipts in the preceding quarter by 11.9 per cent.
“The decline in federally-collected revenue (gross) relative to the quarterly budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter “Gross oil receipt at N1,226.04 billion or 60.1 per cent of the total revenue, was lower than both the proportionate quarterly budget estimate and the receipts in the preceeding quarter by 9.1 per cent and 3.5 per cent, respectively.
The decline in oil revenue relative to the proportionate quarterly budget estimate was attributed to the fall in receipts from crude oil/gas exports.
”This was due to the drop in crude oil production, arising from leakages and shut-ins/shut-downs at some NNPC terminals “At N814.55 billion or 39.9 per cent of the total, non-oil revenue (gross) fell below the proportionate quarterly budget estimate of N1,335.41 billion by 39.0 per cent. It was also below the level in the preceding quarter by 22.1 per cent.
“The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to the shortfall in most of its components except Customs Special Levies (Federation Account component) during the review period.”
The CBN report showed that the federal government earned N5.5 trillion as revenue in 2017 while incurring N2.8 trillion as expenditure. Consequently, the federal government recorded deficit of N2.74 trillion during the year, up by 22 percent from N2.25 trillion in 2016.