The Federal Government plan to enlarge its revenue base suffered a major setback recently as its receepts dipped by about 49 percent, in the second quarter of the year.
The poor income figures was contained in the latest Quarterly Review of the Nigeria Extractive Industries Transparency Initiative (NEITI).
According to the report, while government projected N5.368 trillion revenue flows in its 2017 Fiscal framework for the first six months of the year, actual inflows dropped to N2.712 trillion, representing 49 percent shortfall.
This was even as N4.545 trillion was disbursed as FAAC allocations between January and September 2017. Out of this amount, N1.757 trillion was shared in the third quarter of 2017 as against the N1.377 trillion and N1.411 trillion disbursed in the second and first quarters of the year.
The report also indicated that government’s half year projections were N2.667 trillion for oil and N2.701 trillion for non-oil revenue although, actual revenue for the first half of the year fell short of projections. “Actual oil revenue was N1.587 trillion, representing a shortfall of N1.079 trillion, implying a 40.4 percent underperformance. Non-oil revenue fared slightly worse, as only 41.6 per cent of the projected revenue was realized. Actual non-oil revenue totaled N1.125 trillion, indicating a shortfall of N1.575 trillion.”
The report also pointed out that while government projected that the non – oil sector would outperform the oil sector, the oil sector performed better with as much as 41 percent in revenues generation raking in N1.587 trillion as against N1.125 trillion for the non-oil sector.
Figures for the three tiers of government were no different as the federal government had hoped for a N2.542 trillion revenue flows for the first half of 2017 but actual revenue was N1.497 trillion. A breakdown of the inflows shows that the oil sector accounted for a larger part of the shortfall with a 60 percent drop while the non – oil sector under performed by 49 percent.
“Budgeted half-year inflows from the oil sector was N1.061 trillion but actual oil inflows to the federal government was N414 billion. The federal government’s budget estimated half-year non-oil revenue inflows at N705 billion but realized only N352 billion, indicating a 49 percent shortfall.”
The Report also compared government’s earnings in 2017 to 2016 and showed that total revenues were higher in the first half of 2017 than the corresponding period of 2016 by 22 per cent.