The Central Bank of Nigeria (CBN) monthly report for October 2021 shows some improvements in the federation’s gross revenues, supported by strong oil revenues. According to the report, gross revenue rose 10.4% m/m to N942.3 billion as of October 21 and was 8% lower than the pro-rated monthly budget. On the gross amount, the Federal Government’s retained revenue stood at N331.6 billion, about 50% below its programmed benchmark. The FGN had an ambitious revenue target of 7.99 trillion naira in 2021, with a large projected deficit of 5.6 trillion naira.
Total non-oil revenue fell 13% m/m to N474bn on Oct 21 and was 9% below the monthly budget pro rata. The decline in non-oil revenue was attributed to the decline in all major components: corporate income tax (IRS), customs and excise duties, value added tax (VAT) and independent revenue of the FGN. The largest decline was recorded in FGN independent revenue, which recorded a reduction of 45% m/m, followed by customs and exercise duties, which recorded a decrease of 21% m/m.
Value Added Tax (VAT) accounted for 36 percent of total non-oil revenue collected in the month of reference. It was down 4% m/m and up 20% y/y. Corporate tax, customs and excise duties, FGN independent revenue and others accounted for 32%, 25%, 6% and 1% of total non-oil revenue respectively.
On the other hand, oil revenue increased by 52.5% m/m to reach N468.7 billion, but was 7% below the budget benchmark. Crude oil closed Oct 21 at $84/bbl, versus the government’s budget assumption of $40. Compared to the 1.86 million barrels per day (mbpd) envisaged in the budget, crude oil production was estimated at 1.4 mbpd in October 2021 by OPEC (based on secondary sources).
The Minister of Finance revealed in her approved presentation of the 2022 budget that as of November 21, total non-oil tax revenue stood at N1.6 trillion.
