By Obinna Chima
At N616.35 billion, Nigeria’s gross federally-collected revenue in October 2020 reduced by 18.3 per cent, compared with the N729.14 billion recorded the previous month.
The Central Bank of Nigeria (CBN) revealed this in its monthly economic report for October 2020, which was posted on its website yesterday.
The amount collected in October, according to the report, was below the budget benchmark by 27.2 per cent.
In addition, it was a reduction by 33 per cent, when compared with the level recorded in the corresponding period of 2019.
The development was attributed to declines in both oil and non-oil revenue components.
It showed that the federal government’s retained revenue was N274.48 billion in October 2020, indicating a drop of 6.6 per cent and 52.8 per cent relative to the levels in the preceding month and corresponding period of 2019.
“Driven by the rise in personnel costs and capital releases, provisional aggregate expenditure rose to N725.70 billion from N712.30 billion in the preceding period. Consequently, estimated fiscal deficit in October widened to N451.22 billion, from N418.50 billion in September 2020.
“Total federal government debt outstanding as at end-June 2020, was N31,008.64 billion; with domestic and external debt components accounting for 57.6 per cent and 42.4 per cent of the total debt stock, respectively.
“Due to the slow pace of global economic recovery and the resurgence of COVID-19 cases in some European, Asian and Latin American countries, which depressed global demand and dampened crude oil prices, the federally collected revenue in October 2020, amounted to N616.35 billion, reflecting a shortfall of 27.2 per cent relative to the N846.84 billion budget benchmark,” it stated.
According to the report, decline in receipts from petroleum profit tax (PPT) and royalties, were attributed to the decrease in oil revenue in October 2020.
Relative to the budget benchmark and the corresponding period of 2019, oil revenue fell by 41.8 per cent and 50 per cent, respectively.
“Although, at N96.53 billion, domestic crude oil and gas sales rose substantially by 103.6 per cent relative to receipts in September 2020, it was less than the collections in October 2019.
The value of crude oil and gas exports fell by 64.8 per cent below its level in the corresponding period of 2019,” the report added.
In the review month, economic activities improved following increased consumer demand that led to expansion in production, propelled by the special financial interventions by both the fiscal and the monetary authorities.
It stated that the relative improvements ensured that the Purchasing Managers’ Index (PMI) of both manufacturing and non-manufacturing tended towards the 50.0 per cent threshold.
“The prices of most agricultural export commodities maintained an upward trend in October 2020.
Provisional data indicated that the all commodity price index stood at an average of 85.50 index points in October 2020. This represented a 3.2 per cent increase above the level in September 2020.
“The Bank continued with intervention schemes in the real economy to enhance credit delivery, bolster productivity and growth, as well as cushion the effect of the prevailing demand and supply shocks.
“Nigeria’s crude oil production and export decreased, month-on-month, due to the country’s commitment to compensate for it’s over production in May-June 2020. In October 2020, Nigeria’s crude oil production, including condensates and natural gas liquids, recorded an estimated decline of 0.01 million barrels per day (mbpd) or 0.70 per cent, monthon-month, to an average of 1.50 mbpd.”