Gross inflows into the federation account amounted to N6.31 trillion in 12 months through September 2017, a report by FBNQuest Research have shown.
According to the report, the breakdown of the inflows amounted to N3.51trillion from oil revenue and N2.63 trillion from non-oil revenue.
The federal government last year has intensifies its effort to grow non-oil revenue generation to bridge the fall from global oil prices. According to FBNQuest report, over the period, oil revenue was the higher of the two in ten months, and non-oil revenue in just two. They explained that the gap was smaller in 2016 with N2.07 trillion generated from oil at and non-oil at N2.24trillion.
The report by FBNQuest Research said “it widened in the more recent period because the recovery in oil output pushed up oil revenues considerably in July, August and September. Diplomacy in the Niger Delta has paid off for the federal government.
“A similar conclusion should be drawn from the monthly payouts by the Federation Account Allocation Committee, of which the latest covers the distribution of revenues collected in November. The increase since mid-year is largely attributable to the improvement in average crude output, to 1.87 mbpd in second quarter of 2017 and 2.03 mbpd in third quarter of 2017,” said FBNQuest Research analysts.
They explained that the Central Bank of Nigeria (CBN) data captured in the chart are not to be confused with federal government revenue collection, which the Medium Term Expenditure Framework (MTEF) 2018-20 projects at N5.65 trillion for 2018.
“The new flows would suggest that non-oil revenues are lagging some way behind budget. However, we flag the interim data (for the federal government only) for H1 2017 from the office of the accountant general of the federation. These show oil, non-oil and federal government independent receipts all well behind budget for the period but also substantial unexpected contributions from other sources to offset the disappointment (Good Morning Nigeria, 12 December 2017). These may, or may not be repeatable,” the report added.
Meanwhile, Naira at the Investors & Exporters Foreign Exchange window (I & E) FX depreciated by 0.38 per cent to close at N360.73 against the dollar on Wednesday from N 360.15 it opened for trading. The window for investors and Exporters on Wednesday traded high at N362.00 and low N320.00 but eventually closed at N360.73 against the dollar.
According to FMDQ OTC securities Exchange, a total of $ 340.63 million was transacted through the I&E Forex window on Wednesday. The Naira at the inter-bank (official) market remained unchanged at N305.9 against the dollar, according to the Central Bank of Nigeria (CBN).
At the parallel market, the Naira at the parallel market remained flat for the third consecutive day. The naira against the dollar remained flat at N363 and closed against the Pound sterling, it closed on Wednesday at N485. Against the Euro, it remained unchanged at N432 for the second consecutive trading day.
For money market, Overnight (O/N) and Open Buy-Back (OBB) rates closed at 14.57 per cent and 13.86 per cent representing a -2.64 per cent and 2.48 per cent depreciation against Tuesday’s closing position respectively.