FG earned N5.04tn from oil in 11 months – CBN

The Punch - - FRONT PAGE -

Be­tween Jan­uary and Novem­ber last year, the Fed­eral Gov­ern­ment made about N5.04tn from the sale of oil, fig­ures ob­tained from the Cen­tral Bank of Nige­ria have re­vealed.

The oil rev­enue, ac­cord­ing to the CBN eco­nomic re­port for Novem­ber, was lower than the N8.77tn rev­enue tar­get pro­vided for in the 2019 bud­get for the 11-month pe­riod.

a break­down of the N5.04tn oil rev­enue showed that the sum of N363.9bn was gen­er­ated from crude oil and gas ex­ports, while the sum of N2.94tn was gen­er­ated from Petroleum Profit Tax and Roy­al­ties.

a monthly break­down of the oil rev­enue showed that N417.3bn was earned in Jan­uary, while Fe­bru­ary, March, april, May and June had N479.5bn, N516.9bn, N472.4bn, N410.2bn and N336.6bn re­spec­tively.

For the months of June, the coun­try through the Nige­ria Na­tional Petroleum Cor­po­ra­tion made the sum of N336.6bn; July had N387.7bn; Au­gust, N484.8bn while Septem­ber, Oc­to­ber and Novem­ber had N467.6bn, N577.3bn and N489.1bn re­spec­tively.

the de­crease in oil rev­enue, rel­a­tive to the monthly bud­get es­ti­mate, was at­trib­uted to shutins and shut-downs at some NNPC ter­mi­nals.

The shutdown, ac­cord­ing to find­ings, was due to pipe­line leak­ages and main­te­nance ac­tiv­i­ties.

the re­port read in part, “Oil re­ceipt, at N489.08bn or 56.9 per cent of to­tal rev­enue, was below both the monthly bud­get of N798.83bn and the pre­ced­ing month’s re­ceipt of N577.30bn by 38.8 per cent and 15.3 per cent re­spec­tively.”

Ex­perts have said there is a need for gov­ern­ment to broaden its rev­enue sources in or­der to raise ad­e­quate rev­enue to fi­nance its ex­pen­di­ture.

the Lead Di­rec­tor, Cen­tre for So­cial Jus­tice, eze Onyekpere, said that a good part of the rev­enue pro­jec­tions of gov­ern­ment was not done in line with cur­rent eco­nomic re­al­i­ties.

He said, “Gen­er­ally, our rev­enue pro­jec­tions have sev­er­ally missed the mark over the years. the pro­jec­tions and fore­casts suf­fer from lack of re­al­ism. In 2016, rev­enue pro­jec­tions fell short by 23 per cent; in 2017, it fell short by 47.73 per cent and in 2018 by 45 per cent.

“this in­di­cates that over­all, a good part of our rev­enue pro­jec­tions has not been based on em­pir­i­cal ev­i­dence. Fur­ther, if pro­jected rev­enue in 2018 was N7.1tn and we missed the mark by 45 per cent and have also missed the mark by 30 per cent in the half year of 2019, the fur­ther in­crease in pro­jected rev­enue to N8.15tn in 2020 seems to be hang­ing in the air.”

Newspapers in English

Newspapers from Nigeria

© PressReader. All rights reserved.