Indication that this trend will persist this year emerged yesterday when the price of crude oil, rose to $63.02 per barrel from $60 per barrel, representing $3 above the nation’s budget benchmark of $60 per barrel. According to the economic report for the fourth quarter of 2018 ( Q4’18) released by the Central Bank of Nigeria (CBN) yesterday, total oil revenue rose by 129 percent to N9.4 trillion in 2018 from N4.1 trillion in 2017.
Non oil revenue also rose by 21 percent to N3.9 trillion from N3.2 trillion in 2017. Consequently oil revenue accounted for 71 percent of the total federally collected revenue which rose by 82 percent to N13.3 trillion in 2018 from N7.3 trillion in 2017. However, total federally collected revenue fell by 4.8 percent to N2.4 trillion in Q4’18 due to decline in non oil revenue. The report said: “At N2.41 trillion, federally-collected revenue in the fourth quarter of 2018, was lower than the proportionate quarterly budget estimate of N3.32 trillion billion by 27.4 per cent. It also, fell below the receipts in the preceding quarter by 4.8 per cent.
“The decline in federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in receipts from both oil and non-oil revenue components during the review period Gross oil receipt, at N1.46 trillion or 60.7 per cent of the total revenue, was below the proportionate quarterly budget estimate by 23.7 per cent, but higher than receipts in the third quarter of 2018 by 5.1 per cent. Despite the increase in crude oil price, oil revenue declined relative to the proportionate budget owing to shortfalls in crude oil production and exports, arising from maintenance at various NNPC terminals. “Non-oil revenue, at N946.90 billion or 67.6 per cent of the total, was below the proportionate quarterly budget estimate of N1.4 trillion and the level in the preceding quarter by 32.4 per cent and 17.0 per cent, respectively. The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to the shortfalls in receipts from Federal Government Independent Revenue and VAT in the review period”.