Federal Government incurred a deficit of N397.74 billion in the Month of May according to the Central Bank of Nigeria Monthly Economic Report for May 2017. The report said “the fiscal operations of the Federal Government resulted in an estimated deficit of N397.74 billion. Total estimated Federal Government expenditure, rose by 3.0 per cent, compared with the level in the preceding month.
“Federally-collected revenue (gross) in May 2017 was estimated at N458.42 billion. This was below the monthly budget estimate of N894.76 billion by 48.8 per cent. It was also lower than the receipt in April 2017 by 13.4 per cent. The fall relative to the monthly budget estimate was attributed, largely, to the short fall in both oil and non-oil revenue components. At N458.42 billion, the estimated federally- collected revenue (gross) in May 2017, fell short of the monthly budget estimate of N894.76 billion by 48.8 per cent.”
According to the CBN “gross oil receipts, at N238.09 billion or 51.9 per cent of total revenue, was lower than the monthly budget estimate of N449.62 billion by 47.0 per cent. It was also below the April collection of N303.43 billion by 21.5 per cent. The decline in oil revenue relative to the monthly budget estimate was attributed to the short fall in revenue from crude-oil and gas exports and PPT/Royalties. At N238.09 billion, oil receipts (gross) was lower than the monthly budget estimate by 47.0 per cent, and constituted 51.9 per cent of the total revenue.
“ At N220.33 billion or 48.1 per cent of total revenue, non-oil revenue was below the monthly budget estimate of N445.14 billion by 50.5 per cent. It was also below the April collection of N225.71 by 2.4 per cent. The poor performance relative to the budget was due to the effect of the slowdown in general economic activities which impacted negatively on most of the components of the non-oil revenue. At N220.33 billion, non-oil receipts (gross) was lower than the monthly budget estimate by 50.5 per cent and constituted 48.1 per cent of the total revenue.”
Continuing the CBN report said “of the total federally-collected revenue (net), N258.86 billion was retained in the Federation Account, while N81.29 billion, N21.68 billion and N17.56 billion were transferred to the VAT Pool Account, the Federal Government Independent revenue and “Others”, respectively.
“From the sum of N258.86 billion in the Federation Account for distribution, the Federal Government received N124.44 billion, while the State and Local Governments received N63.12 billion and N48.66 billion, respectively. The balance of N22.64 billion was shared among the oil producing States as 13 per cent Derivation Fund. In addition, the net balance of N81.29 billion retained in the VAT Pool Account was shared as follows: Federal Government, N12.19 billion; State Government, N40.64 billion; and Local Government, N28.45 billion.
“Similarly, the sum of N20.42 billion was distributed from the Excess Crude Account. The Federal, State and Local Governments received N9.36 billion, N4.75 billion and N3.66 billion, respectively. The Oil producing states received an additional N2.66 billion as 13 per cent Derivation Fund.
Furthermore, the sum of N38.52 billion was also shared as Exchange Gain in the order: Federal Government, N17.90 billion; State Governments, N9.08 billion; Local Governments, N7.00 billion and 13 per cent Derivation Fund, N4.54 billion. Overall, the total allocations to the three tiers of government in May 2017 amounted to N399.09 billion. This was below the monthly budget estimate of N783.57 billion by 49.1 per cent. It also fell below the April 2017 total share by 12.3 per cent.
It said “the estimated Federal Government retained revenue for the month of May 2017, at N185.58 billion, was below the monthly budget estimate of N449.60 billion by 58.7 per cent. It was also lower than the preceding month’s receipt of N221.48 by 16.2 per cent. Of the total receipt, Federation Account accounted for 67.0 per cent, while FGN Independent Revenue, Others/Exchange Gain/NNPC Fund, VAT and Excess Crude recorded 11.7, 9.6, 6.6 and 5.1 per cent, respectively. At N185.58 billion, the estimated Federal Government retained revenue was below the monthly budget estimate by 58.7 per cent.
“The estimated total expenditure of the Federal Government, at N583.32 billion, fell short of the 2017 provisional monthly budget estimate by 9.7 per cent. It, however, rose above the level in April 2017 by 3.0 per cent. Recurrent and capital expenditure accounted for 61.0 per cent and 34.3 per cent, respectively, while transfers accounted for the balance of 4.7 per cent of the total expenditure. A breakdown of the recurrent expenditure showed that non-debt obligation was 76.8 per cent of the total, while debt service payments accounted for the balance of 23.2 per cent.
Overall, the fiscal operations of the Federal Government resulted in an estimated deficit of N397.74 billion, compared with the 2017 provisional monthly budget deficit of N196.40 billion.
The fiscal operations of the FG resulted in an estimated deficit of N397.74 billion.
Total estimated Federal Government expenditure, rose by 3.0 per cent, compared with the level in the preceding month.”
According to the CBN “Total estimated statutory allocations to the State Governments amounted to N147.42 billion. This was lower than the monthly budget estimate of N282.84 billion by 47.9 per cent. It was also below the April allocations of N163.74 billion by 10.0 per cent. Receipt from the Federation Account amounted to N106.78 billion or 72.4 per cent of the total statutory allocations. This was below the monthly budget estimate of N210.84 billion by 49.4 per cent. It also fell short of the receipt in April by 15.2 per cent. At N40.64 billion or 27.6 per cent of the total, allocation to the VAT Pool Account fell short of the monthly budget estimate of N72.00 billion by 43.6 per cent. It, however, increased relative to the level in April by 7.7 per cent. Total allocations to Local Governments from the Federation and VAT Pool Accounts in the month of May stood at N87.77 billion. This was below the monthly budget estimate of N170.92 billion by 48.6 per cent. It also fell below the preceding month’s receipt by 8.6 per cent”.
The CBN report said that “domestic crude oil production was estimated at 1.63 mbd or 50.53 million barrels (mb) in May 2017. Crude oil export was estimated at 1.18 mbd or 36.58 mb in the review month. The average spot price of Nigeria’s reference crude oil, the Bonny Light (37° API) fell to $51.20 per barrel in May 2017 from $52.89 per barrel recorded in April 2017, representing a decline of 3.20 per cent.
“Foreign exchange inflow and outflow through the CBN in May 2017 were $2.26 billion and US$3.02 billion, respectively, and resulted in a net outflow of $0.76 billion. Aggregate foreign exchange flow through the economy, however, resulted in net inflow of $2.60 billion in the review month. Foreign exchange sales by the CBN to the authorised dealers amounted to $2.64 billion and represented a 70.8 per cent increase above the level in April 2017.”
