The Federal Government collected gross revenue which was estimated at N458.42 billion, fell short of monthly budget estimate of N894.76 billion by 48.8 percent in May 2017, according to Central Bank of Nigeria (CBN).
It was also lower than the receipt in April 2017 by 13.4 per 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 CBN’s economic report for the month of May revealed that gross oil receipts, at N238.09 billion or 51.9 per cent of total revenue, was lower than the monthly budget estimate of N449.62 billion by 47.0 per cent. It was also below the April collection of N303.43 billion by 21.5 per cent.
The decline in oil revenue relative to the monthly budget estimate was attributed to the short fall in revenue from crude-oil and gas exports and PPT/Royalties.
At N220.33 billion or 48.1 per cent of total revenue, non-oil revenue was below the monthly budget estimate of N445.14 billion by 50.5 per cent. It 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.
According to the report, of the total federally-collected revenue (net), N258.86 billion was retained in the Federation Account, while N81.29 billion, N21.68 billion and N17.56 billion were transferred to the VAT Pool Account, the Federal Government Independent revenue and “Others”, respectively.
From the sum of N258.86 billion in the Federation Account for distribution, the Federal Government received N124.44 billion, while the State and Local Governments received N63.12 billion and N48.66 billion, respectively. The balance of N22.64 billion was shared among the oil producing States as 13 percent Derivation Fund.
In addition, the net balance of N81.29 billion retained in the VAT Pool Account was shared as follows: Federal Government, N12.19 billion; State Government, N40.64 billion; and Local Government, N28.45 billion.