SAT APRIL 27 2024-theGBJournal| The amount disbursed by the Federation Account Allocation Committee (FAAC) to the three tiers of government in April (based on March revenue) declined by 2.6% m/m to N1.12 trillion (March: N1.15 trillion).
This represents 60.1% of the total revenue (N1.87 trillion) generated in the month, after deductions for N69.54 billion for cost of collection and N674.88 billion for interventions and refunds.
In addition, significant declines were recorded across inflows from excise duties, oil royalties, petroleum profit tax (PPT), electronic money transfer levy (EMTL) and custom external tariffs (CET) levies, while receipts from import duty, value-added tax (VAT), gas royalties, and companies’ income tax (CIT) increased.
Analysts expect the currency depreciation accompanying the FX market liberalisation to continue supporting oil revenue in naira terms.
However, relatively lower crude oil production may likely ensure oil revenue remains underwhelming relative to pre-pandemic levels.
At the same time, we maintain our expectation that non-oil revenue will continue to support aggregate revenue, given the sustained improvement in economic activities and the impact of the provisions of the 2023 Finance Act.
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