The Federal Government’s oil revenue target for May has dropped from N804bn to N223bn, representing about 72 per cent reduction in federal earnings; this is according to Statistics from the Central Bank of Nigeria’s Monthly Economic Report for May 2023.
According to the report; “oil revenue at N223bn for May was 36 per cent below receipts in the preceding month and below the monthly target of N804bn”.
The observed shortfall in oil revenue, according to CBN; was driven mainly by lower receipts from Petroleum Profit Tax and Royalties.
Gross federation earnings dropped as a result of lower oil and non-oil receipts, the report added.
At a total of N837bn, federation revenue was lower than the level in April by 16 per cent, and the budget by 53 per cent.
In terms of contribution, the report said non-oil revenue sources continued to dominate, accounting for 73.4 per cent of federation revenue in the review period.
At N614bn, non-oil receipt was 5.4 per cent less than the level in April, and 36 per cent below target.
The shortfall was largely attributed to lower collections from Company Income Tax, Value Added Tax, and Customs & Excise Duties, reflecting seasonality in the filing of tax returns by businesses in Nigeria.
The CBN report comes on the heels of a similar report by Reuters; that the United States waterborne imports of crude from the Organization of the Petroleum Exporting Countries and its non-OPEC partners, dropped steadily over the last year, further tightening supplies in the U.S. while supporting other markets including Europe.
