The Central Bank of Nigeria has revealed in its third quarter report that the Federal Government has witnessed an unprecedented surge in its non-oil revenue, soaring by a staggering 67% to reach approximately N4 trillion.
The report further unveils that the Federal Government’s collected revenue surged by an impressive 50.1% in the third quarter of 2023, reflecting a remarkable growth trajectory in fiscal performance.
The CBN’s third quarter economic report highlighted the remarkable increase in revenue to N4.79 trillion, attributed to higher non-oil receipts, albeit falling slightly below the budget benchmark by 9.5%.
The report states, “At N4,791.39 billion, Federation Account receipt exceeded the level in Q2 2023 by 50.1% but was below the benchmark by 9.5%,” signifying a remarkable fiscal milestone for the country’s economic landscape.
Non-oil revenue remarkably dominated federation revenue, accounting for 83% of the total, with oil revenue constituting the remaining 17%. The surge in revenue is attributed to higher receipts from Company Income Tax, Customs and Excise Duties, Value-Added Tax, Production Sharing Contract, and the 2023 interim dividend declared by the Nigerian National Petroleum Company Limited.
The removal of fuel subsidy and unification of foreign exchange policies by the current administration have significantly bolstered the accrued revenue to the federation account. However, these measures have come with inflationary repercussions for the citizens, as reported by The
It was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at the Federal Account Allocation Committee retreat in November, that the removal of fuel subsidy propelled the monthly Federation Revenue to an average of N1 trillion in the last four months.
Despite the remarkable surge in revenue, the World Bank has raised concerns about the transparency of the Nigeria National Petroleum Corporation Limited regarding the financial gains from fuel subsidy removal and remittances to the federation account.
The fiscal leap in Nigeria’s non-oil revenue reflects a significant milestone for the nation’s economy, driven by increased economic activities and enhanced tax administration efficiency. The sustained growth trajectory in revenue signals promising prospects for Nigeria’s fiscal resilience and economic stability.
