—-recurrent stood at 73%
—-capital and transfer 18 per cent
—- Federally-collected revenue, N1.26859trn,
—-drop in oil and non oil revenue
—- total allocation to states N380.25 billion
Federal Government spent a total of N1.23025trillion in the first three months of 2016 above the N505.07 billion it received as income during the period. This showed that the government was in deficit of N725.18 billion and had to borrow to meet its obligation to workers and contractors during the period.
Data released by the government banker, the Central Bank of Nigeria disclosed that going by the provisional data it has Federal Government’s expenditure for the first quarter of 2016 was above the provisional quarterly budget estimate by 3.4 per cent, but was below the level in the fourth quarter of 2015 by 20.3 per cent. The development the apex bank said relative to the proportionate quarterly budget estimate was attributed, mainly, to the rise in capital expenditure
It said “the Federal Government retained revenue for the first quarter of 2016 based on provisional data amounted to N505.07billion. This was below the receipts in the fourth quarter of 2015 by 37.5 per cent. Of the total revenue, Federation Account accounted for 81.6 per cent, while Federal Government Independent Revenue, VAT, and Others (NNPC Refund and Exchange Gain) accounted for 8.0, 5.6 and 4.8 per cent, respectively. “A breakdown of the total expenditure showed that the recurrent component accounted for 72.8 per cent, while capital and statutory transfers accounted for 18.0 and 9.2 per cent, respectively. A further breakdown of the recurrent expenditure showed that the non-debt component accounted for 72.7 per cent, while debt service payments accounted for the balance of 27.3per cent. Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N725.18 billion, which indicated an increase of 178.6 per cent above the 2015 provisional quarterly budget deficit of N260.25billion”.
The CBN also said “Provisional data indicated that federally-collected revenue, at N1.26859trillion, during the first quarter of 2016, was lower than the 2015 quarterly budget estimate of N2,444.60 by 48.1 per cent. This was also below the receipts in the fourth quarter of 2015 by 18.0 per cent. The decline in federally-collected revenue (gross) relative to the budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue during the review quarter
“At N666.13 billion or 52.5 per cent of the total revenue, gross oil receipt was lower than the provisional quarterly budget and the receipts in the fourth quarter of 2015 by 50.9 and 19.8 per cent, respectively. The decline in oil revenue relative to the budget estimate was attributed to the persistent fall in receipts from crude oil/gas export, due to the continuous drop in the price of crude oil in the international market as well as series of shut-ins and shut-downs at some NNPC terminals owing to pipeline vandalism and repairs during the review quarter
“At N602.46billion or 47.5 per cent of total revenue, gross non-oil receipts fell below the provisional budget estimate and receipts in the fourth quarter of 2015 by 44.6 and 16.0per cent, respectively. The decline in non-oil revenue relative to the provisional budget estimate was due, largely, to the fall in receipts from all of its components except Customs Special Levies (Non-Federation Account) during the review quarter Of the gross federally -collected revenue, a net sum of N855.40 billion was transferred to the Federation Account for distribution among the three tiers of government and the 13.0% Derivation Fund. The sums of N40.31 billion, N188.71 billion and N53.81billion were transferred to the Federal Government Independent Revenue, VAT Pool Account and Others, respectively”.
Giving details how the money that came into the federation account was shared, the CBN said “the Federal Government received N412.24 billion, while the state and local governments received N209.09 billion and N161.20 billion, respectively. The balance of N72.86 billion was allocated to the 13.0% Derivation Fund for distribution among the oil-producing states. Also, the Federal Government received N28.31 billion from the VAT Pool Account, while the state and local governments received N94.35 billion and N66.05 billion, respectively. The sum of N11.21billion was also distributed as Exchange Gain among the three tiers of government and the 13% Derivation Fund as follows: Federal Government (N5.23 billion),State Governments (N2.65billion), Local Governments (N2.04billion) and 13% Derivation Fund (N1.29 billion). In addition, the sum of N18.99billion was received by the Federal Government being NNPC monthly installment refund of N6.33 billion paid in the first quarter of 2016. Thus, the total statutory and VAT revenue allocation to the three tiers of government in the first quarter of 2016 amounted to N1.07431 trillion, compared with the provisional quarterly budget estimate of N1.99477 trillion and N1.20059 trillion received in the previous quarter.
“The Federal Government retained revenue for the first quarter of 2016 based on provisional data amounted to N505.07billion. This was below the receipts in the fourth quarter of 2015 by 37.5 per cent. Of the total revenue, Federation Account accounted for 81.6 per cent, while Federal Government Independent Revenue, VAT, and Others (NNPC Refund and Exchange Gain) accounted for 8.0, 5.6 and 4.8 per cent, respectively
“At N1.23025trillion, provisional data indicated that Federal Government expenditure for the first quarter of 2016 was above the provisional quarterly budget estimate by 3.4 per cent, but was below the level in the fourth quarter of 2015 by 20.3 per cent. The development relative to the proportionate quarterly budget estimate was attributed, mainly, to the rise in capital expenditure. A breakdown of the total expenditure showed that the recurrent component accounted for 72.8 per cent, while capital and statutory transfers accounted for 18.0 and 9.2 per cent, respectively. A further breakdown of the recurrent expenditure showed that the non-debt component accounted for 72.7 per cent, while debt service payments accounted for the balance of 27.3per cent. Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N725.18 billion, which indicated an increase of 178.6 per cent above the 2015 provisional quarterly budget deficit of N260.25billion.
“Total allocation to state governments (including the Federation Account, 13.0% Derivation Fund and VAT) stood at N380.25 billion during the review quarter. This was 45.6 and 8.0 per cent lower than both the provisional budget estimate and the level in the fourth quarter of 2015, respectively. Further breakdown showed that receipts from the Federation Account were N285.90billion (75.2 per cent), while VAT contributed N94.35 billion (24.8per cent). The share of Federation Account was 12.8 per cent lower than the level in the fourth quarter of 2015. However, receipts from the VAT Pool Account rose by 10.6per cent above the level in the fourth quarter of 2015. Provisional allocations to local governments from the Federation and VAT Pool Accounts in the first quarter of 2016 stood at N229.29billion. This was 46.7 and 8.9 per cent below the provisional budget estimate and the level in the fourth quarter of 2015, respectively. Of the total amount, allocation from the Federation Account was N163.25 billion (71.2per cent), while VAT Pool Account accounted for the balance of N66.05billion (28.8per cent)”.
