Nigeria’s total non-oil receipt increased by 16.7 percent to N369.84 billion in November, up from the N316.79 billion realized the previous month.
This formed part of the Central Bank of Nigeria’s (CBN) monthly economic report obtained yesterday. However, the amount of non-oil earnings, which was 43.1 percent of total revenue in the month under review, was below the monthly budget of N447.24 billion by 17.3 percent. The drop in the collection, relative to the monthly budget, was attributed to the decline in revenue from Value Added Tax, Education Tax and the federal government independent revenue.
Also, total non-oil export earnings, at $455.37 million, indicated an increase of 15.4 percent and 48.9 percent, relative to the levels in October 2019 and the corresponding period of 2018, respectively. The report attributed the rise in earnings from non-oil exports in November largely to a 3,797.7 percent increase in receipts from the mineral sector to $ 78.88 million.
However, the report stated that export receipts from food products and industrial sector fell by 10.3 percent and 7.2 percent below the levels in the preceding month, to $9.41 million and $188.02 million respectively.
“Proceeds from the transport sub-sector, also fell by 0.01 percent, below the level in the preceding month to $0.04 million. “The shares of the various sectors in non-oil export proceeds were: industrial sector, 41.3 percent; agricultural products, 30.5 percent; minerals, 16.2 percent; manufactured products, 9.9 percent; and food products, 2.1 percent,” the report stated.
Generally, the report showed that at N858.92 billion, the estimated federally-collected revenue (gross) in November 2019 fell below both the monthly budget estimate of N1.246 trillion and the preceding month’s receipt of N894.09 billion by 31.1 percent and 3.9 percent, respectively. The decline, relative to the monthly budget estimate, was attributed to a shortfall in both oil and non-oil revenues.
“Oil receipts, at N489.08 billion or 56.9 percent of total revenue, was below both the monthly budget of N798.83 billion and the preceding month’s receipt of N577.30 by 38.8 percent and 15.3 percent, respectively. “The decrease in oil revenue, relative to the monthly budget estimate, was attributed to shut-ins and shut-downs at some NNPC terminals, due to pipeline leakages and maintenance activities.
“Of the net sum of N723.31 billion retained in the Federation Account, the sums of N100.72 billion, N26.88 billion and N23.65 billion were transferred to the VAT Pool Account, Federal Government Independent Revenue and ‘Others’, respectively, leaving a net balance of N572.06 billion for distribution to the three tiers of government and 13 percent Derivation Fund,” the report stated.
A breakdown of the amount showed that the federal government received N276.12 billion while the state and local governments received N140.05 billion and N107.98 billion, respectively.
The balance of N47.91 billion, according to the report, was shared among the oil-producing states as 13 per cent Derivation Fund.
According to the report, Nigeria’s crude oil production, including condensates and natural gas liquids, in the month under review was estimated at 1.91 mbd or 57.3 mb in the review month. This represented a marginal decline of 0.02 mbd or 1.04 percent, below the 1.93 mbd produced in the preceding month. Crude oil export was estimated at 1.46 mbd or 43.8 mb, the same as the preceding month. The allocation of crude oil for domestic consumption remained at 0.45 mbd or 13.5 mb in the review month.
Furthermore, the report showed that the external sector performance improved in the review month, due to an increase in the international price of crude oil by 7.5 percent to $63.56 per barrel. Consequently, aggregate foreign exchange inflow into the CBN, at $3.72 billion, rose by 5.8 percent, above the level in the preceding month. It, however, showed a decrease of 53 percent below the level at the end of the corresponding period of 2018.
The rise in aggregate foreign exchange inflow into the CBN, relative to the preceding month’s level, was attributed, largely, to the rise in both oil and non-oil receipts. “Aggregate outflow of foreign exchange from the Bank fell by 12.9 percent and 17.3 percent to $4.31 billion, below the levels at the end of the preceding month and the corresponding period of 2018, respectively.
“The development, relative to the preceding month’s level, was attributed, mainly, to 10.4 percent and 18.4 percent decline in interbank utilization and other official payments, respectively. “Overall, foreign exchange flows, through the Bank at end-November 2019, resulted in a net outflow of $0.59 billion, compared with a net outflow of $1.43 billion in the preceding month.
“It, however, recorded a net inflow of $2.71 billion when compared with the level in the corresponding period of 2018. “Aggregate foreign exchange inflow into the economy amounted to $9.84 billion, showing an increase of 7.5 percent above the level at the end of the preceding month,” the report said.