Nigeria realizes N1.23 billion out of N9.37 billion in oil revenue projected in April 2022

Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed, on Monday painted a grim picture of the economic downturn plaguing the country in fiscal year 2022, especially through oil revenues seen as the mainstay of the Nigerian economy.

Speaking on oil revenue performance (January-April) before the House Finance Committee chaired by Hon. Abiodun James Faleke in Abuja, the Minister said, “The gross revenue of the Oil and Gas Federation for the year 2022 has been projected at N9.37 trillion.

Meanwhile, the Debt Management Office (DMO) revealed that Nigeria’s debt profile as of December 2021 stood at N39.55 trillion.

According to the document presented to the Committee, out of the budgeted non-oil revenue (taxes) of 6,449 trillion naira, the sum of 1,991 trillion real naira was realized against the pro rata of 2,150 billion naira before deductions.

Of the 1.52 trillion naira available for distribution from the Main Pool – Federation Account, the federal government received 802.50 billion naira while the state governments received 407.04 billion naira and 313 billion respectively. .81 billion naira.

The federal, state and local governments received N107.67 billion, N358.90 billion and N251.23 billion respectively from the VAT pool account.


She said: “As of April 30, 2022, 1.23 trillion naira has been realized on the prorated projection of 3.12 trillion naira, representing a performance of only 39%.

“Despite rising oil prices, oil revenues underperformed due to large oil production shortfalls for two main reasons: oil production shutdowns resulting from pipeline vandalism and crude oil theft. There is also a high cost of oil subsidy due to the higher landing costs of imported products.

“Non-oil taxes slightly tracked targets, with an average performance of 92.6 percent.”

She observed, however, that “revenue performance should improve in the second half of 2022 thanks to concerted efforts to combat oil theft and pipeline vandalism.”

“Some of the non-oil taxes are also seasonal, which means we expect to collect a lot more in the second half.

“Improved revenue collection should also moderate the debt service-to-revenue ratio, which is currently above our target level.”

According to the minister, the actual average price of crude oil on rice is above the budget benchmark price of $73 per barrel.

However, the rise in the price of oil is offset by a drop in oil production, which in April 2022 averaged 1.32 mbd.

“The NNPC attributes the drop in oil production to the high incidence of crude oil theft and pipeline vandalism.

“The exchange rate, inflation and GDP growth varied negatively compared to the objectives. However, growth is expected to accelerate given efforts to contain structural issues negatively impacting the cost of doing business,” she said.

While providing an update on revenue performance, the document showed that: “As of April 2022, FGN retained revenue was only N1.63 trillion, 49% of the pro-rated target of 3, 32 trillion naira.

“The share of FGN in oil revenue was 285.38 billion naira (representing a performance of 39%), while non-oil tax revenue amounted to 632.56 billion naira, representing a performance of 84%. . Corporate tax and VAT collections were N298.83 billion and N102.97 billion, representing 99% and 98% of their respective targets.

“Customs collections (composed of import duties, excise and fees, plus special levies on the federation account) followed the target of N76.77 billion (25.42%).

“Other income was N664.64 billion, of which self-employed income was N394.09 billion.”

On the spending side, the documents showed that: “Total spending for 2022 is estimated at N17.32 trillion, with a prorated spending target of N5.77 at the end of April.

“Actual expenditure as of April 31 was N4.72 trillion. Of this, N1.94 trillion was for debt servicing and N1.26 trillion for personnel costs including pensions. As of April , 773.63 billion naira had been spent on capital expenditure.

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Sallie R. Loera