- Oil sector grows as Nigeria’s real GDP increases by 3.46% in Q4 ’23
The Federation Account Allocation Committee has shared a total sum of N1, 149.816 trillion January 2024 Federation Account Revenue to the Federal, States and Local Governments.
The revenue was shared at the February 2024 meeting of the Federation Accounts Allocation Committee chaired by the Minister of Finance and Coordinating Minister for the Economy, Wale Edun.
The balance in the Excess Crude Account was $473,754.57 million.
According to a communiqué issued by FAAC, the N1,149.816 trillion total distributable revenue comprised of distributable statutory revenue of N463.079 billion, distributable Value Added Tax (VAT) revenue of N391.787 billion, Electronic Money Transfer Levy (EMTL) revenue of N15.922 billion and Exchange Difference revenue of N279.028 billion.
Bawa Mokwa Director, Press and Public Relations, Office of the Accountant General of the Federation, said in a statement issued on Thursday that the total revenue of N2.068.154 trillion was available in January 2024.
According to him, total deductions for the cost of the collection were N78.412 billion, total transfers, interventions and refunds were N639.926 billion and savings were N200.000 billion.
He said that the gross statutory revenue of N1, 151.808 trillion was received for January 2024. This was higher than the sum of N875.382 billion received in December 2023 by N276.426 billion.
The gross revenue available from the Value Added Tax in January 2024 was N420.733 billion. This was lower than the N492.506 billion available in December 2023 by N71.773 billion.
The communiqué stated that from the N1,149.816 trillion total distributable revenue, the Federal Government received a total of N407.267 billion, the State Governments got N379.407 billion and the Local Government Councils received N278.041 billion.
A total sum of N85.101 billion (13 percent of mineral revenue) was shared to States as derivation revenue.
From the N463.079 billion distributable statutory revenue, the Federal Government received N216.757 billion, State Governments got N109.942 billion and the Local Government Councils received N84.761 billion.
The sum of N51.619 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
The Federal Government received N58.768 billion, State Governments got N195.894 billion and the Local Government Councils received N137.125 billion from the N391.787 billion distributable Value Added Tax (VAT) revenue.
The N15.922 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government got N2.388 billion, the State Governments received N7.961 billion and the Local Government Councils pocketed N5.573 billion.
The Federal Government received N129.354 billion from the N279.028 billion Exchange Difference revenue. The State Governments got N65.610 billion, and the Local Government Councils went home with N50.582 billion. The sum of N33.482 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
In the month of January 2024, Companies Income Tax (CIT), Import Duty, Petroleum Profit Tax (PPT) and Oil and Gas Royalties increased significantly, while Value Added Tax (VAT), Export Duty, Electronic Money Transfer Levy (EMTL) and CET Levies decreased considerably.
Oil sector grows as Nigeria’s real GDP increased by 3.46% y/y in Q4 ‘23
Meanwhile, data from the National Bureau of Statistics released on Thursday revealed that the domestic economy maintained its growth pace for the third consecutive quarter in Q4-23, as the real GDP rose by 3.46 percent y/y (Q3-23: +2.54% y/y).
The growth outturn is 72bps higher than Cordros’ estimate (+2.74% y/y) and 106bps higher than Bloomberg’s median consensus (+2.40% y/y) estimate.
According to the GDP breakdown provided, the oil sector turned positive in Q4-23 (+12.11% y/y | Q3-23: -0.85% y/y), as crude oil production increased by 6.8 percent y/y to an average of 1.53mb/d in Q4-23 (Q3-23 1.43mb/d). Consequently, the oil sector contributed 4.70 percent to the total GDP (Q3-23: 5.48%) during the review period.
At the same time, the non-oil sector sustained its positive growth trend, increasing by 3.07 percent y/y in Q4-23 (Q3-23: +2.75% y/y). Accordingly, the non-oil sector contributed 95.30 percent to the total GDP (vs 94.52% in Q3-23).
From a sectoral perspective, Agriculture GDP increased by 2.10 percent y/y (Q3-23: +1.30% y/y), Industries GDP grew by 3.86 percent y/y (Q3-23: +0.46% y/y), while Services GDP moderated marginally to 3.98 percent y/y (Q3-23: +3.99% y/y).
In the quarter under review, aggregate GDP stood at N65, 908,258.59 million in nominal terms. This performance is higher when compared to the fourth quarter of 2022 which recorded aggregate GDP of N56, 757,889.95 million, indicating a year-on-year nominal growth of 16.12 percent. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.
