The country generated N799.10 billion from the oil sector in the first quarter of 2022,the Central Bank of Nigeria (CBN) says .
The figure represents a 28.3 percent decline from N1.11 trillion it recorded in the fourth quarter of 2021.
While oil revenue amounted to N799 billion in three months, petrol subsidy payment gulped N675 billion same period.
The apex bank said this in its economic report for the first quarter of 2022. Oil revenue comprises crude oil and gas exports, petroleum profit tax and royalties, and domestic crude oil and gas sales, among others.
The figure was 66.4 percent below the projected revenue.
On the other hand, non-oil revenue in the quarter under review was N1.73 trillion, a 0.13 percent increase from N1.72 trillion in the previous quarter. However, the figure was 22.1 percent below projected earnings in Q4.
“The uptick in earnings, relative to 2021Q4, was attributed, largely, to a significant increase in collections from value-added tax and Federal Government independent revenue,” the report reads.
“Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly, in government-owned enterprises (GOEs).”
The report said that non-oil revenue accounted for 68.4 percent of the total federation account remittances, while oil revenue contributed 31.6 percent to federation account collections. “Federation account operations receipts into the federation account declined by 2.5 per cent and 45.0 percent, relative to the preceding quarter and target, following a sharp decline in oil revenue sources,” the report added.
“Gross federation receipts in 2022Q1 amounted to N2.530.49 billion. This compares with N2.594.26 billion in 2021Q4 and the benchmark of N4.598.25 billion.”
The apex bank said the observed drop in federation receipts was triggered by the decline in all components of oil revenue.
It said the fiscal deficit of the federal government was N1.6 trillion, 11.8 percent below the level in the previous quarter.
Total assets in the Nigerian banking sector rose by N11.8bn in one year to N65.48tn as of the end of June 2022, representing 22 per cent increase over the period.
The Deputy Governor, Financial Systems Stability Directorate, Aishah Ahmad, disclosed this in her personal statement at the last MPC meeting.
“Key industry aggregates also continued their year-on-year upward trajectory with total assets rising to N65.48tn in June 2022 from N53.64tn in June 2021,” she said.
She said gross credit had maintained an upward trajectory since 2019, rising by N5.02tn between June 2021 and June 2022 with significant growth in credit to manufacturing, general commerce and oil & gas sectors.
The increase, she said, was achieved amidst continued decline in non-performing loans ratio from 5.3 per cent in April 2022 to 5.0 per cent in June 2022.
She added that, “Furthermore, results of stress tests showed resilience of banks’ solvency and liquidity ratios in response to potential severe macroeconomic shocks.
“However, the bank must remain vigilant to proactively manage probable macro risks to the financial system such as lingering spillover effects of the pandemic, winding down industry forbearance portfolio, and other risks to financial stability such as exchange rate, operational and cyber security risks.”
