Nigeria’s oil revenue has declined by 3 per cent to N1.34 trillion in 2023 Quarter 1 when compared to 2022 quarter 4. Also the quarterly target witnessed a decline of 43.5 per cent, relative to 2022, Q4. The performance was indicative of revenue shortfalls from petroleum profit tax and royalties, following lower domestic crude production.
This was contained in the 2023 third quarter economic outlook report of the Central Bank of Nigeria (CBN) which was obtained by Punch Newspapaer over the weekend.
Federal Government’s expenditure exceeded revenue by N1.43tn in the first three months of 2023, oil revenue drops
The CBN report also states that the Federal Government’s expenditure exceeded revenue by N1.43tn in the first three months of 2023.
According to the report, the fiscal performance in 2023, Q1 was impaired by low oil revenue realisation. Consequently, the retained revenue of the FGN fell by 10.7 per cent, relative to 2022, Q4, and was 46.1 per cent below the quarterly target.
FGN’s aggregate expenditure also declined by 1.3 and 36.0 per cent, relative to the preceding quarter and the quarterly target, respectively.
At N3.48tn, the CBN report said, gross federation revenue fell below the levels in 2022, Q4 and the budget benchmark by 0.4 and 26.6 per cent, respectively.
Non-oil revenue continued to dominate government revenue, accounting for 61.4 per cent, while oil receipts accounted for 38.6 per cent.
“Conversely, non-oil receipts, at N2.14tn, improved against the preceding quarter by 1.2 per cent, but was 9.6 per cent below the quarterly target of N2.37tn,” the report said.
“The fiscal operations of the FGN in 2023, Q1, resulted in a deficit. At N1.43tn, the provisional fiscal deficit of the FGN was 9.6 per cent higher than the level in the preceding quarter but 22.1 per cent below the target.”
“Thus, the FGN overall deficit widened relative to 2022, Q4, but narrowed by 22.1 per cent when compared with the proportionate budget. Consolidated public debt, as at end-December 2022, stood at N46.25tn (or 22.8 per cent of GDP).