FG Generates N9.953tn Revenue in 11 Months

23 Jan 2013

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CBN  Building

Obinna Chima
The total federally collected revenue between January and November 2012 increased by 12 per cent to N9.953 trillion, compared to the N8.759 trillion estimated for the period, the Central Bank of Nigeria (CBN) has said.

This, however, reflected a decline by 2.5 per cent over the level in the corresponding period of 2011.
The CBN disclosed this in its monthly economic report for November 2012, posted on its website Tuesday.

Also, the total federally-collected revenue in November increased by 4.2 per cent to N841.56 billion, compared to the monthly budgeted estimate of N806.21 billion for the month. The amount of revenue generated also reflected 3.8 per cent increase over the receipt the preceding month.
The central bank attributed the development to rise in oil revenue during the period.

It further explained that at N630.95 billion, gross oil receipts, which constituted 75 per cent of the total, exceeded both the receipt in the preceding month and the monthly budget estimate by 4 and 14.1 per cent, respectively. This, the CBN also attributed largely, to the increase in receipts from Petroleum Profit Tax (PPT).

“At N210.61 billion, gross non-oil receipts constituted 25 per cent of the total and 17.3 per cent below the receipts in the preceding month, but 3.2 per cent above the monthly budget estimate. The increase in non-oil revenue relative to the receipts in the preceding month reflected, largely, the increase in corporate tax and VAT collections,” the report added.

It also showed that at N1.431 trillion, currency in circulation fell by 1.9 per cent in the review month, in contrast to the increase of 8.1 per cent at the end of the preceding month. The development, according to the central bank, reflected wholly the 1.1 per cent decline in currency outside banks.

“Relative to the level at end-December 2011, currency in circulation fell by
8.6 per cent. Total deposits at the CBN amounted to N6.613 trillion, indicating a decline of 7.9 per cent below the level at the end of the preceding month. The development reflected, largely, the fall in federal government and Deposit Money Banks’ (DMBs’) deposits which more than offset the rise in deposits by private sector.

“Of the total deposits, the percentage shares of the federal government, banks and ‘others’ were 66.1, 23.4 and 10.5 per cent, respectively, compared with 68.8, 22 and 9.2 per cent in the preceding month.

“On month-on-month basis, reserve money (RM) declined by 2.0 per cent to N2.979 trillion at the end of the review month, reflecting the trends in bank’s reserves with the CBN,” the report added.

Caption: Trading session  at NSE
All-Share Index Inches to 31,000 Points

The Nigerian Stock Exchange (NSE) All-Share Index (ASI) inched up to 31,000 points as blue chip stocks where in high demand, resulting in significant capital gains at the stock market Tuesday.

The ASI, helped by gains recorded by Dangote Cement Plc, Julius Berger Nigeria Plc amongst others, rose by 0.45 per cent to close at 30,983.83. Similarly, market capitalisation rose by N46 billion to close at N9.912 trillion.
The market had opened on a negative note the previous day after an unprecedented rally the previous week, which saw the ASI rise by 5.9 per cent.

But determined to take advantage of the attractive valuations in the market and position themselves for the  2012 full-year results of companies, investors increased their demand for equities.

Consequently, the ASI hit a new high of 30, 983.83, which was a level we saw in the market in 2008. Market operators and stakeholders are optimistic that it would not be too long for the market gauge to cross the 31,000 level, where it last traded on December 2, 2008.
The Managing Director of Asset Management Corporation of Nigeria (AMCON), Mr. Mustafa Chike-Obi, has already projected that the ASI would close around the 40, 000 points level this year.

“I maintained early last year that the market was undervalued and my target for this year is that the ASI will hit 40,000 points. The Nigerian stock market is undervalued and it will appreciate. I understand the trauma people went through from 2008 to 2009 and there is reluctance on the part of some investors, especially the retail investors to get back. Now that we have seen a solid basis for appreciation, you will begin to see retail investors,” Chike-Obi said.

Tuesday’s rally was led by Dangote Cement with a gain of N5.00, trailed by Julius Berger Nigeria Plc with N3.87. International Breweries Plc and UACN Property Development Company Plc garnered N1.44 to close at N15.84.

Tags: Business, Featured, Nigeria, CBN

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