A total of N2,040.59 billion accrued into the Federation Account from various traditional sources between October and December 2017 according to new data released at the weekend by Central Bank of Nigeria.
The figure was lower than the proportionate quarterly budget estimate of N2,684.28 billion by 24.0 percent and also fell below the receipts in the preceding quarter by 11.9 percent.
CBN attributed the decline in federally-collected revenue (gross) relative to the quarterly budget estimate to the shortfall in receipts from both oil and non-oil revenue during the review quarter.
“Gross oil receipt at N1,226.04 billion or 60.1 percent of the total revenue, was lower than both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 9.1 percent and 3.5 percent, respectively.
The decline in oil revenue relative to the proportionate quarterly budget estimate was attributed to the fall in receipts from crude oil/gas exports as a result of the drop in crude oil production, arising from leakages and shut-ins/shut-downs at some NNPC terminals.
Total non-oil stood at N814.55 billion or 39.9 percent of the total, falling below the proportionate quarterly budget estimate of N1,335.41 billion by 39.0 percent, which also below the level in the preceding quarter by 22.1 percent.
“The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to the shortfall in most of its components except Customs Special Levies (Federation Account component) during the review period.
“A net sum of N1,326.16 billion was retained in the Federation account after statutory deductions and transfers.”
Of this amount, the Federal Government received N637.73 billion, State and Local governments received N323.47 billion and N249.38 billion, respectively, while the balance of N115.58 billion was allocated to the 13.0% Derivation Fund for distribution among the oil-producing states.
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In addition, the Federal, State and Local Governments received N36.50 billion, N121.66 billion and N85.16 billion, respectively, from the VAT Pool Account.
Also, N50.81 billion was distributed as Exchange Gain as follows: Federal Government, N24.24 billion; state governments, N12.98 billion; local governments, N9.48 billion; and 13% Derivation Fund, N4.8 billion.
The apex bank added that N0.94 billion was drawn-down from the Non-oil Excess Account and distributed as follows: Federal Government, N0.50 billion; state governments, N0.25 billion; and local governments, N0.19 billion.
Thus, the total statutory and VAT revenue allocation to the three tiers of government in the fourth quarter of 2017 amounted to N1,621.22 billion, compared with the proportionate quarterly budget estimate of N2,350.72 billion.
Total allocation to state governments from the Federation Account, including the 13.0% Derivation Fund and the VAT Pool Account, was N578.05 billion in the review quarter.
This was lower than the proportionate quarterly budget estimate by 31.9 percent. A breakdown showed that the receipts from the Federation Account was N456.39 billion (79.0%), while the share from VAT pool account stood at N121.66 billion (21.0%).
The receipts from both the Federation and VAT Pool Accounts were 27.8 percent and 43.7 percent below the respective proportionate budget estimates.
3.2.3 Statutory Allocations to Local Government Councils Total allocations to local governments from the Federation and VAT Pool Accounts in the fourth quarter of 2017 stood at N344.21 billion.
This was below the proportionate quarterly budget estimate by 32.9 percent.
Of the total amount, allocation from the Federation Account was N259.05 billion (75.3%), while the VAT Pool Account stood at N85.16 billion.
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