Nigeria’s export earnings shoot up by 2.8%.

Says country spent N2.5trn on school, medical fees, others in 2017

Africa’s largest economy, Nigeria is said to have have earned $16.2 billion, a 2.8% increase in export earning in the third quarter of 2018 when compared with the second quarter of the year, data from country’s central bank shows; indicating about 35.3% increase in earnings when compared to corresponding period of 2017.

The Central Bank of Nigeria’s data, reported in the balance of payments statistics of the bank, shows that that Nigeria’s biggest earning came from the oil and gas sector, accounting for 94.4% of total export earnings during the review period, increasing by 9.5 per cent to $15.3 billion in Q3 2018 versus the preceding quarter.

“Earnings from crude oil and gas, which accounted for 94.4 per cent of total export earnings during the review period, increased by 9.5 per cent to $15.3 billion in Q3 2018 when compared with the preceding quarter. Earnings from non-oil and electricity exports decreased by 49.3 per cent to $909.04 million in Q3 2018 when compared with the preceding quarter,” the bank said in the report.

CBN data also shows that payments for import of goods (fob) to the economy in the review period increased by 70.5% to $14.08 billion above the level recorded in the preceding quarter. This was largely as a result of 79.7% increase in the imports of non-oil products.

The federal government, in a separate report, Annual Activity Report of Banking and Payment Systems Department, released by the Nigerian central bank, said that it collected N827.86 billion in crude oil receipt in 2017, a 50.29% increase from N550.56 billion in 2016.

“Domestic oil and gas receipts was N1,391.07 billion, against N729.02 billion in 2016. Oil and gas royalties, rentals, gas flared and miscellaneous revenue was N750.86 billion, representing an increase of 29.59 per cent from N579.41 billion in 2016. Petroleum Profit Tax receipts was N1,512.92 billion, indicating an increase of 43.43 per cent compared with N1,054.84 billion in 2016,” the central bank’s report states in part.

Nigeria’s non-oil receipts, comprising of CIT, Import and Excise duties, fees, auction sales, common external tariff (CET), special levy, customs penalty charges and receipts from Federal Inland Revenue Service (FIRS) through Nigerian Liquefied Natural Gas (NLNG) and Education Tax (EDT) accounted for 30.16% or N1.9 billion of the total revenue, the bank said.

“Federal Government received the highest share of N2,876.11 billion (45.72%), made up of the statutory revenue allocation, VAT proceeds, augmentation and excess bank charges, as well as, excess crude releases.  The Federal Government receipts indicated an increase of N540.40 billion (23.13%) to N2,876.11 billion from N2,335.70 billion in 2016.

“States and local governments received N2.13 billion (33.89%) and N1.28 billion (20.39%), respectively, indicating an increase of N523.97 billion (11.71%) and N288.05 billion (52.68%) compared with N1,608.72 billion and N994.53 billion received in 2016,” according to the report.

The CBN also disclosed that the Nigerian National Petroleum Corporation (NNPC) Joint Ventures received cash calls amounting to N719.79 billion, as against N541.43 billion recorded in 2016, an increase of N373.55 billion (107.89%) over the previous year.

The bank said crude oil receipts amounted to $2.10 billion against $2.35 billion in 2016, while gas receipts stood at USD0.66 billion compared to $0.07 billion in 2016. “The total receipts amounted to $D2.76 billion, in the review period, from USD2.42 billion in 2016, representing an increase of $0.03 billion.

“Petroleum Profit Tax collected in the year 2017 was $3.96 billion, against $4.42 billion in 2016, indicating a decrease of $0.46 billion (10.41%). “Other taxes collected was $1.47 billion compared with U$1.59 billion in 2016, indicating a decrease of 7.55 per cent.

“Also, revenue from oil royalties, rentals, gas flared penalties and gas royalties amounted to $2.36 billion, against USD1.75 billion, indicating an increase of USD0.61 billion or 34.86 per cent,” the bank said.

Meanwhile, the federal government spent a total of $8.28 billion (N2.52 trillion) in school fees, medical services and obligations of the Federal Government in  2017, 123.18% increase from the $3.71 billion remitted in 2016, the country’s central bank said.

The increase in spending is attributed it to an increase in government activities within the reviewed period.