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CBN: FG missed May revenue target by 48.8%

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CBN: FG missed May revenue target by 48.8%

Stories Tony Chukwunyem

Revenue collected by the Federal Government in May 2017 fell short of the monthly budget estimate by 48.8 per cent and was lower than the preceding month’s figure by 13.4 per cent, according to the Central Bank of Nigeria (CBN)’s economic report for May.

According to the report “federally-collected revenue (gross) in May 2017 was estimated at N458.42 billion. This was below the monthly budget estimate of N894.76billion by 48.8 per cent. It was also lower than the receipt in April 2017 by 13.4per cent. The fall relative to the monthly budget estimate was attributed, largely, to the short fall in both oil and non-oil revenue components.”

The report stated that gross oil receipts, at N238.09 billion or 51.9per cent of total revenue was lower than the monthly budget estimate of N449.62 billion by 47.0per cent, adding that this was also below the April collection of N303.43 billion by 21.5per cent.
It attributed the decline in oil revenue relative to the monthly budget estimate to the short fall in revenue from crude-oil and gas exports and Petroleum Profit Tax (PPT)/Royalties.

Similarly, the study shows that non-oil revenue collected by the federal government during the period stood at N220.33billion or 48.1per cent of total revenue, which was below the monthly budget estimate of N445.14billion by 50.5per cent.
This was also below the April collection of N225.71 by 2.4 per cent.

“The poor performance relative to the budget was due to the effect of the slowdown in general economic activities, which impacted negatively on most of the components of the non-oil revenue,” the report stated.

In addition, the CBN data shows that the government’s estimated retained revenue for the month of May 2017, stood at N185.58 billion, which was 58.7 per cent below the monthly budget estimate of N449.60 billion. It was also lower than the preceding month’s figure of N221.48billion by 16.2 per cent.

Furthermore, the report stated that the estimated total expenditure of the Federal Government during the period stood at N583.32billion which was 9.7 per cent short of the 2017 provisional monthly budget estimate but 3.0per cent higher than the level in April 2017.

According to the report:”Recurrent and capital expenditure accounted for 61.0 per cent and 34.3 per cent, respectively, while transfers accounted for the balance of 4.7 per cent of the total expenditure. A breakdown of the recurrent expenditure showed that non-debt obligation was 76.8 per cent of the total, while debt service payments accounted for the balance of 23.2 per cent.

“Overall, the fiscal operations of the Federal Government resulted in an estimated deficit of N97.74billion, compared with the 2017 provisional monthly budget deficit of
N196.40 billion.”

It will be recalled that the Federal Government last month challenged the Federal Inland Revenue Service (FIRS) and the Nigerian Customs Service (NCS) to step up their efforts at increasing revenue generation if major projections in the 2017 budget were to be met.

The Minister of Budget and National Planning, Senator Udoma Udo Udoma, said although certain developments affected the realisation of projected government revenue last year, government was working hard to ensure increase in revenues to fund the 2017 budget.

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