Nigeria loses N371 billion in expected monthly return for the month of August

Zainab-ahmed
  • Nigeria’s monthly revenue dropped by N371 billion for the month of August
  • The loss was caused by oil theft and vandalism in the southern region of the country
  • The Nigerian minister of finance noted that revenue degradation is more Nigeria’s problem than its national debt

The monthly report by the Federation Accounts Allocation Committee showed that Nigeria’s revenue for the month of August is N885.5 billion.

This figure is around N300 billion less than the country has generated in the past three months. In June and in July, Nigeria's monthly revenue exceeded N1 trillion with the country making N1.22 trillion in June and N1.26 trillion in July 2022.

These turnouts when placed beside each show a 29% dip in the country’s earnings, compared to July 2022 and 24 percent compared to June 2022.

Based on the report, statutory revenues amounted to N654.36 billion, while value-added tax increased from N190.26 billion in July to N231.17 billion in August.

Statutory revenues include collections by Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria Customs, and others.

For the month of August, distribution among the three tiers of government slumped by N280.948 billion to N673.137 billion when put aside the N954.085 shared in July.

Of the amount, the federal government received N259.641 billion, states received N222.949 billion, and the local government councils received N164.247 billion.

This drop in revenue is a result of the ongoing security crises in the Niger Delta region where majority of Nigeria's oil is being produced.

Nigeria’s economy which is largely dependent on its oil is taking a huge hit owing to the fact that there seems to be no solution to the vandalism of oil infrastructure and theft that is going on in the region.

The minister of finance, Zainab Ahmed spoke on the subject at the Nigeria International Economic Partnership Forum in New York on Friday. She noted that Nigeria’s predominant issue is with its revenue generation and not the country’s national debt.

“Nigeria’s debt is 24 percent of the nominal GDP and below 40 percent threshold set in the debt management strategy.” She said.

“Nigeria operates a four-year rolling medium-term strategy which guides the borrowing strategy of the federal government. And we have specific indices that we closely monitor. The public debt that we set is 40 percent, and we are at 24 percent.” She added.

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