The negative impact of the Coronavirus pandemic has resulted in the Federal Government recording a revenue shortfall of about N1.01tn in the first quarter of this year.
The drop in revenue, according to documents obtained by thewhistler.ng from the Budget Office of the Federation, was primarily due to the dwindling revenue inflow into the federation account.
The pandemic had so far led to an unprecedented drop in global crude oil prices.
The outbreak of the deadly virus in Nigeria had resulted in the lockdown of many states, a development that has paralysed economic activities.
For instance, out of the prorated revenue target of N1.96tn set for the first three months of this year, the Federal Government could only earn about N950.55bn.
Based on the analysis of the revenue projection, the N1.01tn shortfall represents a decline of about 52 per cent.
For oil revenue, the impact of the pandemic resulted in a shortfall of N195.37bn or 30 per cent from the prorated revenue target of N659.4bn. The actual revenue generated during the three-month period from oil was put at N464.03bn.
Similarly, the impact of the pandemic was also felt in revenue sources such as Nigeria Liquefied Natural Gas with revenue target of N31.07bn, signature bonus/renewals (N234.83bn), domestic recoveries (N59.25bn), grants and donor funding (N9.1bn), mining and mineral revenue (N470m).
Based on analysis, the government could not generate any amount from these revenue items during the period under review.
Also, further analysis of the document showed that the revenue shortfall was also experienced in the area of Companies Income Tax where revenue dipped by N80.1bn from the target of N209.83bn to N129.72bn while Value Added Tax dropped by N30.92bn from N73.14bn to N42.23bn.
Source:thepunchng.com