Nigeria’s oil revenue dipped by 28.3 percent between the fourth quarter of last year and the first quarter of this year, according to the Central Bank of Nigeria (CBN).
In its economic report for the first quarter of 2022, the CBN said the country generated N799.1 billion from oil sector in Q1 2022., as against N1.11 trillion in Q4 2021.
As against the N799.1 billion oil income however, petrol subsidy consumed N675 billion within the same period.
Oil revenue is calculated from crude oil and gas exports, petroleum profit tax and royalties, and domestic crude oil and gas sales, among others.
The N799.1 billion was 66.4 percent below the projected revenue.
Non-oil revenue however experienced an increase of 0.13 percent; from N1.72 trillion in Q4 2021 to N1.73 trillion in Q1 2022.
In spite of the improvement, the figure was 22.1 percent below projected earnings for Q1 2022.
“The uptick in earnings, relative to 2021 Q4, was attributed, largely, to a significant increase in collections from value-added tax and federal government independent revenue”, the report explains.
“Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly in government-owned enterprises (GOEs)”.
The report added that non-oil revenue accounted for 68.4 percent of the total federation account remittances, while oil revenue contributed 31.6 percent to federation account collections.
“Gross federation receipts in 2022 Q1 amounted to N2.530.49 billion. This compares with N2.594.26 billion in 2021Q4 and the benchmark of N4.598.25 billion”.
The CBN said the observed drop in federation receipts was triggered by the decline in all components of oil revenue.
It said the fiscal deficit of the Federal Government was N1.6 trillion, 11.8 percent below the level in the previous quarter.
“At N1.617.84 billion, the provisional fiscal deficit of the FGN was 11.8 percent below the level in the preceding quarter, but overshot the quarterly target of N1.596.52 billion by 1.3 percent”, it says.