BREAKING: Oil Pushes FG’s Revenue Up By 54% To ₦2tn Q3 2024
Oil revenue rose by 53.59 per cent to ₦2 trillion relative to the level in the third quarter of 2024, occasioned by higher receipts from oil revenue.
The Central Bank of Nigeria’s 2024 fourth quarter economic report, however, said the earnings fell short of the quarterly target by 62.19 per cent.
Sustained efforts in securing oil infrastructure contributed to the performance of oil revenue in comparison to the preceding quarter, resulting in increased receipts from petroleum profit tax (PPT) and royalties.
At ₦7.23 trillion, provisional gross federation account receipts were 5.31 per cent above the level in the preceding quarter, but 19.67 per cent short of the benchmark.
Although the increase relative to the preceding quarter was due, largely, to higher oil proceeds, the apex bank said the composition of gross federation revenue showed that non-oil revenue remained dominant, accounting for 72.28 per cent, while oil revenue constituted the balance.
Non-oil revenue, at ₦5.23 trillion, was 6.03 per cent below the levels in the preceding quarter but 41.30 per cent above the target.
The drop relative to the preceding quarter was driven by low collections from corporate tax, reflecting the seasonal impact of tax return filings by companies.
From the federally collected revenue of ₦7.23 trillion, a net balance of ₦4.44 trillion was distributed to the three tiers of government after accounting for additional revenue, statutory deductions and transfers.
The federal, state, and local governments received ₦1.44 trillion, ₦1.49 trillion and ₦1.09 trillion, respectively, while the balance of ₦0.42 trillion was allocated to the 13% derivation fund for oil-producing states.
Net disbursement was 13.33 per cent above the level in Q32024 but was 35.94 per cent short of the quarterly target.
FGN retained revenue rose in the review period due to higher receipts from the federation account, non-oil excess, and FGN independent revenue.
At ₦2.52 trillion, provisional FGN retained revenue was 10.40 per cent above the level in Q32024 but was 48.57 per cent below the benchmark.
On the other hand, pthe rovisional aggregate expenditure of the FGN rose on account of higher personnel cost and interest payments.
At ₦5.60 trillion, provisional aggregate expenditure was 2.22 per cent above the level in the preceding quarter but was 22.09 per cent short of the quarterly target of ₦7.19 trillion.
The rise in expenditure relative to the preceding quarter was associated with the increase in interest payments and personnel costs, which rose by 6.98 and 23.31 per cent, respectively.
Further analysis of total expenditure showed that recurrent (75.13%) accounted for the largest share outlay, with the remainder split between capital (17.10%) and transfer payments (7.77%).
