According to the CBN, the shortfall is 21.3 per cent less than what it earned a couple of months back and 37 per cent smaller than the N1.1 trillion it projected to receive for the month of August in its budget estimates.
The Federal Government’s earnings for August 2018 took a N200 billion dive from its July receipts, according to a report published by the Central Bank of Nigeria recently.
The government recorded N947.62 billion in July as against N745.52 billion in August.
According to the CBN, the shortfall is 21.3 per cent less than what it earned a couple of months back and 37 per cent smaller than the N1.1 trillion it projected to receive for the month of August in its budget estimates.
Poor crude oil revenue is blamed for the dip and this is despite the fact that the price of a barrel of petroleum has remained on a high. Brent crude, which is the benchmark for pricing Nigerian oil blends in the international market, topped $85 this week, thanks to U.S sanctions on Iran which take effect in November. Shut-ins to certain oil wells and damaged pipelines have caused the country to lose out on the windfall growing as a result of increased prices.
The report read: “At N745.52 billion, estimated federally collected revenue (gross) in August 2018 fell below both the 2018 monthly budget estimate of N1,107.12 billion [N1.1 trillion] and the receipt in the preceding month of N947.62 billion by 32.7 and 21.3 per cent, respectively.
“The decline in the monthly budget estimate was attributed to a shortfall in both oil and non-oil revenues. Oil receipts at N403.59 billion or 54.1 per cent of total revenue was below the monthly budget estimate of N640.21 billion by 37 per cent, as well as below the preceding month’s receipt of N513.54 billion by 21.4 per cent.
“The fall in oil revenue relative to the monthly budget estimate was attributed to the drop in crude oil production arising from repairs and maintenance of oil facilities at various NNPC (Nigeria National Petroleum Corporation) terminals.”