Friday, 16 October 2015

FALL IN CRUDE OIL PRICES BRINGS REVENUE TO N1.5 TRILLION

Available data from the Central Bank of Nigeria (CBN) showed that total federally-collected revenue during the second quarter of 2015, stands at N1.5 trillion, reflecting a decline of 39.2 and 27.7 per cent, compared with the provisional quarterly budget estimate of N2.5 trillion and receipts of N2.05 trillion in the preceding quarter, respectively.

The development relative to the budget estimate was attributed to the decline in oil and non-oil revenue during the review period. The CBN said in its second quarter economic report released recently that at N839.02 billion, gross oil receipts, which constituted 56.5 per cent of the total, fell by 38.2 and 30.7 per cent below the provisional quarterly budget estimate of N1.3 trillion and receipts of N1.2 trillion in the preceding quarter, respectively.

The decline in oil revenue relative to the budget estimate was also attributed, mainly, to the fall in receipts from Petroleum Profit Tax (PPT) and Royalties, owing to the persistent fall in crude oil prices in the international market, during the review quarter.

Besides, of the gross federally-collected revenue during the review quarter, the sum of N898.58 billion (net deductions) was transferred to the Federation Account for distribution among the three tiers of government and the 13 per cent derivation fund.

Specifically, at N473.86 billion, estimated federally-collected revenue in May 2015, was lower than both the monthly budget estimate and the receipt in the preceding month by 41.8 and 35.5 per cent, respectively. The decline in estimated federally-collected revenue (gross) relative to the monthly budget estimate was also attributable largely to the shortfall in receipts from both oil and non-oil revenue during the review month.

Also, at N267.18 billion or 56.4 per cent of the total revenue, gross oil receipt was lower than the monthly budget estimate by 41.0 per cent. It was also lower than the level in the preceding month and the corresponding period of 2014 by 6.7 and 53.1 per cent, respectively.

The decline in oil receipts relative to the monthly budget estimate and the level in the preceding period was attributable to the fall in receipts from crude oil/gas exports and PPT/Royalties, occasioned by the fall in the price of crude oil in the international market.
According to the CBN, the sum of N98.83 billion, N195.05 billion and N57.75 billion were transferred to the Federal Government Independent Revenue, VAT pool account and others, respectively.

The Federal Government received N430.41 billion, while the state and local governments received N218.31 billion and N168.31billion, respectively. The balance of N81.56 billion was allocated to the 13 per cent derivation fund for distribution among the oil-producing states.

Also, the Federal Government received N29.26 billion from the VAT Pool Account, while the state and local governments received N97.53 billion and N68.27 billion, respectively. The CBN disclosed that Nigeria’s crude oil production, including condensates and natural gas liquids averaged 1.91 million barrels per day (mbd) or 173.81 million barrels in the quarter.

Nigeria’s crude oil export stood at 1.46 mbd or 132.86 million barrels for the quarter, while deliveries to the refineries for domestic consumption remained at 0.45 mbd or 40.95 million barrels.

The CBN said that at N628.72 billion, the estimated Federal Government retained revenue for the second quarter of 2015 was lower than both the provisional budget estimate and the receipts in the preceding quarter by 32.4 and 38.8 per cent, respectively.

Of this amount, the Federal Government’s share from the Federation Account, VAT, NNPC Refund, NNPC additional revenue and “Others” accounted for 68.5, 15.7, 4.7, 3.0, 0.6 and 7.5 per cent, respectively. (guardian)