Nigeria Earnings 34% Below Target in Oct – Report
Nigerian government earnings came at about 34% below target in October 2024, the Central Bank said in its economic report for the month. The report revealed that spending continues to rise above income, though the devaluation of the naira has continued to give the authority a false sense on better performance.
Provisional data for October 2024 revealed a decline in gross federation account earnings, driven by reduced revenue from both oil and non-oil sources. Specifically, the gross federation account receipts for October stood at N1,988.47 billion, representing a decrease of 7.87% compared to September 2024 when N2,158.24 billion was posted.
Further review revealed that the amount generated by the Federal Government was 33.72% short of the budget target of N3,000.01 billion. According to details from the CBN report, non-oil revenue accounted for 81.59% of the total, amounting to N1,622.44 billion.
Although this was 5.70% lower than the N1,720.54 billion recorded in September 2024, it exceeded the budget target of N1,232.82 billion by 31.60%, CSL Stockbrokers stated in a review note.
Oil revenue, on the other hand, contributed 18.41% of total receipts, amounting to N366.03 billion. Analysts said this represented a 16.37% month-on month decline from N437.69 billion in September 2024 and was 79.29% below the budget target of N1,767.19 billion.
The decline in oil revenue was primarily attributed to lower collections from Petroleum Profit Tax (PPT) and Company Income Tax (CIT) in the upstream sector, while the significant shortfall from target is attributed to production disruptions caused by ageing pipelines and installations.
The Federal Government of Nigeria (FGN) retained revenue of the overall federation account receipt rose during the review period owing largely to higher receipts from FGN’s share of excess non-oil revenue.
At N763.79 billion, provisional FGN retained revenue was 6.07% higher m/m compared to N720.09 billion in September 2024, but 53.23% short of the target (N1,633.21 billion).
The provisional aggregate expenditure of the FGN rose, following higher capital spending. This was N1,832.23 billion in October 2024, higher by 28.43% m/m compared to N1,426.65 billion in September 2024, but 23.60% short of the target of N2,398.12 billion.
The fiscal deficit of the Federal Government of Nigeria (FGN) widened in October 2024, reflecting increased spending relative to revenue. Provisional data showed that the primary deficit and overall deficit rose by N362.85 billion and N361.89 billion, reaching N383.29 billion and N1,068.45 billion, respectively.
This was a significant increase from the deficits recorded in September 2024, which stood at N20.44 billion and N706.56 billion. The deficit expansion highlights the need to improve the fiscal space through diversified revenue streams, even as efforts to enhance tax collections are underway. #Nigeria Earnings 34% Below Target in Oct – Report Oil Climbs as Concerns over U.S Economic Growth Ease
