Nigeria’s Fiscal Operations Expand In 3Q 2024 – CBN

According to the apex bank’s third-quarter economic report, federally collected revenue increased by 7.48 per cent to N6.86 trillion compared to the level in second quarter 2024 but fell 23.71 per cent short of the benchmark, reflecting persistent fiscal challenges despite improved tax collections.

The report indicated that the increase was largely due to higher receipts from corporate tax and Value Added Tax (VAT).

This as the composition of gross federation revenue showed that non-oil revenue remained dominant, accounting for 81.00 per cent, while oil revenue constituted the balance.

However, the report said that Non-oil revenue stood  at N5.56 trillion, representing 19.48 and 50.36 per cent above the levels in the preceding quarter and target, respectively, adding that  the increase relative to preceding quarter was driven, largely, by higher collections from corporate tax and value added tax (VAT).

Additionally, the regulatory bank explained that the increase relative to quarterly target reflects improved revenue collection relative to budget expectations.

On the other hand, oil revenue, fell by 24.72 per cent to N1.30 trillion, against  the level in the second quarter of  2024 on account of lower receipts from petroleum profit tax(PPT)and royalties.

It was also 75.39 percent short of the quarterly target due to shut-ins, arising from ageing oil pipelines and installations.

The report further stated that from the federally collected revenue of N6.87 trillion, a net balance of N3.92 trillion was distributed to the three tiers of government after

accounting for additional revenue and statutory deductions and transfers.

This is the Federal, State, and Local Governments received N1.27 trillion, N1.36 trillion and N0.99 trillion respectively, while the balance of N0.30 trillion was allocated to the 13 per cent  Derivation Fund for oil-producing states while  net disbursement was 12.71 per cent above the level in second quarter of 2024, but was 43.47 per cent short of the quarterly target.

Similarly, the Federal Government of Nigeria retained revenue decreased, falling 5.22 per cent and 53.41 per cent  below second quarter 2024 levels and the quarterly target, respectively. Aggregate expenditure also contracted, declining 16.26 per cent  from second quarter 2024 and 22.38 per cent below the quarterly target.

Furthermore, the provisional aggregate expenditure of the FGN declined, following lower interest payments and overhead cost was N5.58 trillion and  provisional aggregate expenditure in third quarter of 2024 was 16.26 per cent below the level in the preceding quarter and 22.38 per cent short of the quarterly target of N7.19trillion.