Driven by the drop in crude oil prices, federally collected revenue fell by 32 percent to N625.9 billion in May 2020 from N915.28 billion collected in April. Central Bank of Nigeria (CBN) stated this in its Monthly Economic Report for May released yesterday, adding that the government also recorded a 23 percent rise in deficit to N561.71 in May from N488.24 billion deficit recorded in April.
The apex bank stated: “Driven by the slump in crude oil prices in March 2020, federally collected revenue in May 2020 declined by 31.6 per cent and 12.0 per cent to N625.91 billion, relative to its levels in April 2020 and May 2019, respectively. “The receipt was 52.4 per cent below the monthly benchmark. Retained revenue of the Federal Government in May was N276.99 billion, while total expenditure was N838.71 billion, resulting in an estimated deficit of N561.71 billion.
“The federally collected revenue in May 2020 was estimated at N625.91 billion. This represented respective declines of 52.4 per cent and 31.6 per cent, relative to the monthly benchmark estimate of N1.32 billion and the April 2020 receipt of N915.28 billion. The observed shortfall reduced the revenue available to the three tiers of government in May 2020.
Thus, the net sum allocated was N584.45 billion (after statutory deductions and transfers) compared with N620.52 billion shared in April.” According to the regulator, the changes in federation account revenue were driven by outturns in both oil and non-oil revenues. It added that receipts from crude oil and gas exports as well as petroleum profit tax (PPT) and royalties, the major sources of oil revenue, declined by 68.2 per cent and 51.2 per cent, respectively, relative to benchmarks.
Similarly, non-oil revenue performance was constrained by delays in the filing of tax returns by companies and individuals, due to the lockdown. On forex inflows and outflows, it said: “Forex inflows into the economy fell by 43.2 per cent in May 2020. Inflows through the CBN and autonomous sources were negatively impacted.
“On a month-on-month basis, forex inflows into the economy declined to $5.52 billion in May 2020. The decline in inflow, relative to the level in April 2020, was attributed to the lower receipts from oil sources, which fell sharply by 55.2 per cent because of the continued fragility in global crude oil demand.”