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HomeTop NewsNigeria's revenue falls short by 61% in April to N1.23 trln ~Finmin

Nigeria’s revenue falls short by 61% in April to N1.23 trln ~Finmin

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By Samuel Bankole

Nigeria revenue expectations underperformed by 61 per cent in the first four months of the year with total earnings standing at N1.23 trillion compared with the prorate projection of N3.14 trillion in the same period, according to the minister of finance and budget, Zainab Ahmed on Thursday.

Ahmed, who disclosed this in Abuja while presenting the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper (MTEF&FSP), said “The gross oil and gas federation revenue for the full year 2022 was projected at N9.37 trillion; As at April 30, 2022, N1.23 trillion was realized out of the prorata projection of N3.12 trillion, representing a mere 39 per cent performance.”

She said that despite higher oil prices, oil revenue underperformed during the period due to significant oil production shortfalls.

According to her, oil production shut-ins resulting from pipeline vandalism and crude oil theft; and high petrol subsidy cost due to higher landing costs of imported products significantly impacted negatively on the country’s earnings.

She said though the average performance of the non-oil sector stood around 92.6 per cent in the period, the sector trailed targets marginally.

Nigeria, she said collected a total of N767.42 billion from Value Added Tax (VAT) in the four-month to April, compared with the N813.93 billion projection for the period.

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Revenue collection from company income tax stood at N697.03 billion in the first four months of the year, compared with N662.59 billion projection for the same period.

On the expenditure side, the country’s “aggregate expenditure for 2022 is estimated at N17.32 trillion, with a prorata spending target of N5.77 at end of April. The actual spending as of April 31st was N4.72 trillion. Of this amount, N1.94 trillion was for debt service, and N1.26 trillion for Personnel cost, including Pensions.”

The minister said that as at April, N773.63 billion has been spent on capital expenditure.

The minister, however, played two scenarios for the next year budget estimate, saying the country could spend an estimated N16.98 trillion in 2023, short ofN337.05 billion or 1.9 per cent of the total budget outlay for the ongoing 2022 fiscal year.

The second scenario was that the country could be that “2023 aggregate expenditure is
estimated at N17.99 trillion, N669.82 billion (3.9 per cent) higher than 2022.”

These scenarios, according to her will depend on either the government retaining the subsidy regime or embarking on subsidy reform and also pursuing an aggressive implementation of cost-to-income limits for government organisations and enteprises.

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