FG revenue slumps to N1.94trn, says CBN
BY TEMITOPE ADEBAYO
Nigeria’s Federal Government revenue plunged to N1.94 trillion at the end of January 2025, marking a steep 31 per cent decline from December figures, according to the Central Bank of Nigeria CBN.
The drop, driven by weak oil and non-oil earnings, has widened the country’s fiscal deficit and fallen significantly short of budget expectations.
The CBN’s latest report revealed that federally collected revenue underperformed, battered by lower collections from petroleum profit tax, royalties, company income tax, and customs and excise duties. Oil revenue was particularly hard-hit, sliding 45 per cent from the previous month to N0.61 trillion — 65 per cent below the monthly target — amid disruptions caused by aging pipelines and facility shutdowns.
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Non-oil income, though still accounting for nearly 69 per cent of total revenue, also dropped by over 22 per cent compared to December, reflecting sluggish collections from corporate tax, excise duties, and government independent revenue.
After statutory deductions and transfers, a net sum of N1.42 trillion was distributed to the three tiers of government, with the federal, state, and local governments receiving N0.45 trillion, N0.50 trillion, and N0.36 trillion, respectively. An additional N0.11 trillion was allocated to oil-producing states under the 13 per cent Derivation Fund.
The report also showed that the Federal Government’s retained revenue dropped sharply to N0.48 trillion — down 69 per cent from December — reflecting both lower independent earnings and exchange gains. Despite the dip in spending, the shortfall between revenue and expenditure has expanded, highlighting sustained fiscal strain for Africa’s largest economy.
