The abrupt drop in the prices of oil in the global market within the last seven months has resulted in a 28.05 per cent drop in Nigeria’s revenue.
Crude oil accounts for about 90 per cent of Nigeria’s export earnings and 70 per cent of total revenue, which explains why the fall in oil prices is taking a massive toll on the nation’s revenue.
Brent crude price which peaked at $115 a barrel in June 2014, dropped to about $45 per barrel by January 2015, before rallying to $60 per barrel in February.
The country’s gross receipts dipped to a total of N3.676 trillion between July 2014 and January 2015, representing a reduction by N1.433 trillion, compared to N5.109 trillion gross federally collected revenue recorded by the Central Bank of Nigeria (CBN) in its economic report for the first half of 2014.
The figures revealed that while Nigeria’s gross receipt in July 2014 was N630.3 billion and N601.6 billion in August 2014, it further dropped to N502 billion in September 2014, N536.6 billion in October, N500 billion in November 2014 and N490 billion in December 2014. The country recorded further heavy decline in gross receipts in January 2015, as revenue dropped to N416 billion.
On the other hand, the net distribution shared by the federal, state and local governments in the last seven months stood at a total of N4.172 trillion. A breakdown of this showed that in July 2014, a total of N654 billion was shared among the three tiers of government, N611.7 billion was shared for August 2014, N603.5 billion for September 2014, N593.3 billion for October 2014, N628.7 billion for November 2014, N580.3 billion for December 2014 and N500.1 for January 2015.