Federation revenue drops to ₦1.94tn in January 2025 – CBN

From Adanna Nnamani, Abuja

In January, Nigeria’s Federation Account revenue dropped to ₦1.94 trillion, a 31.35% decline from December 2024 and 35.22% below the monthly benchmark, according to the Central Bank of Nigeria’s (CBN) January 2025 Economic Report.

The fall was driven by reduced receipts from Petroleum Profit Tax (PPT), royalties, Company Income Tax (CIT), and customs and excise duties.

Non-oil revenue, contributing 68.67% of total gross revenue, reached ₦1.33 trillion, surpassing the monthly target of ₦1.23 trillion by 8.25% but falling 22.18% below December 2024 due to lower collections from federal government independent revenue, excise duties, and corporate tax.

Oil revenue, however, plummeted 45.45% to ₦0.61 trillion from ₦1.12 trillion, missing the monthly target by 65.55%. The CBN attributed this to production shut-ins from ageing oil pipelines and installations, impacting PPT and royalties.

After statutory deductions and transfers of ₦952.38 billion, ₦1.42 trillion was shared among the three tiers of government. The federal government received ₦0.45 trillion, states ₦0.50 trillion, and local governments ₦0.36 trillion, with ₦0.11 trillion allocated to oil-producing states under the 13% Derivation Fund.

Net disbursement fell 17.52% from December 2024 and 38.30% below the budgeted target, reflecting fiscal pressures from declining oil revenues and collection inefficiencies.