As price of Bonny Light,
The optimism came as the Central Bank of
According to the CBN's Economic Report for the month of February,
Crude oil export was estimated at 1.41mbd or 39.48 million barrels for the month of February. This represented a decrease of 4.1per cent when compared with 1.47mbd or 45.57 million barrels recorded in the preceding month.
Deliveries to the refineries for domestic consumption remained at 0.45 mbd or 12.6 million barrels during the review month. However, the apex bank's report which came out shortly before the new price mark, said at an estimated average of
Analysts said by hitting the
Responding to the new development, Head, Research & Investment Advisory at
"I think the development is a positive one for our economy. The increase in reserves will improve the level of confidence in our economy. The ECA is beginning to rise again as a buffer to external shock. The only apprehension is the political environment and outlook given that we are in a pre-election year. This heightened apprehension cum the current security challenges, may likely increase the political risk rating of the country.
"As a matter of fact IMF recently classified
This will enable the common man feel the impact of the positive numbers that the economy is currently projecting," the
He added, however, that the next year election may increase the leve of spending saying, "The truth is also that, we expect to see more fiscal imprudence owing to the upcoming election, which is a norm.
But, going forward, the accretion is a positive development. As far as the global economy is improving and demand for oil is increasing.
The Economic Report stated that relative to the preceding month, growth in estimated federally-collected revenue (gross) was attributed to increases in both oil and non-oil revenue.
At N630.14 billion, oil receipts (gross), which constituted 74.3per cent of the total revenue, exceeded the receipts in the preceding month by 32.8 per cent, but was lower than the monthly budget estimate by 2.2 per cent. The fall in oil receipts relative to the monthly budget estimate was attributed to the shortfall in receipts from crude oil and gas export due to pipe line vandalism resulting in a drop in production. Relative to the preceding month, the rise in oil receipts was attributed to increase in all its components.
Meanwhile, the CBN disclosed that non-oil receipts (gross), at N217.68 billion or 25.7per cent of the total, exceeded the receipts in January by 8.4 per cent, but was lower than the monthly budget estimate by 27.6 per cent. "On a month-on-month basis, the rise in non-oil receipts (gross) was attributed to the growth in receipts from all its components, except customs and excise duties and education tax. However, the decline in non-oil revenue relative to the monthly budget estimate reflected, largely, the low receipts from all its components except custom special levy and Value Added Tax. "Of the federally-collected revenue (gross), the sum of N498.44 billion (after all deductions and transfers) was transferred to the Federation Account for distribution among the three tiers of government and the 13.0 per cent
The Federal Government received N235.02 billion, while the state and local governments received N119.21 billion and N91.90 billion, respectively. "The balance of N52.31 billion was credited to the 13.0 per cent
"Of the total amount, the Federation Account accounted for 82.6 per cent, while FGN Independent Revenue, SURE-P, and VAT Pool Accounts, accounted for 7.5, 5.7 and 4.2 per cent, respectively. "At N342.25 billion, total estimated expenditure for
"A breakdown of total expenditure showed that the recurrent expenditure accounted for 73.8 per cent, while the capital expenditure and transfer components accounted for the balance of 19.5 and 6.7 per cent, respectively. Non-debt obligations accounted for 76.6 per cent of the total recurrent expenditure, while debt service payments accounted for the balance of 23.4 per cent.
"Thus, the fiscal operations of the Federal Government resulted in an estimated deficit of N57.79 billion, compared with the 2013 monthly budget deficit estimate of N73.92 billion for 2014."
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