Non-oil revenue bolsters federation account to N6.86 trillion in Q3 2024, says CBN

• The Central Bank of Nigeria said the federation account increased to N6.86 trillion in the third quarter of 2024
• It said the account was boosted by non-oil revenue, which paid in the form of corporate tax and Value-Added Tax
• The CBN said oil revenue declined by 24.72 per cent to N1.30 trillion in the quarter

The Central Bank of Nigeria (CBN) says non-oil revenue bolstered the federation account in the third quarter (Q3) of 2024, as it increased by 7.48 per cent to N6.86 trillion.

CBN, in its latest Economic Report, noted that non-oil revenue accounted for 81 per cent of the earnings, representing N5.56 trillion, while oil revenue made up the balance.

According to the report, the increase in the gross federation account earnings was driven by higher receipts from corporate tax and Value-Added Tax (VAT).

It said, “Gross federation account earnings improved, occasioned by higher receipts from non-oil revenue. At N6.86 trillion, the provisional gross federation account receipt was 7.48 per cent above the level in the preceding quarter but 23.71 per cent short of the benchmark.

“The increase was due largely to higher receipts from corporate tax and Value-Added Tax. The composition of gross federation revenue showed that non-oil revenue remained dominant, accounting for 81.00 per cent, while oil revenue constituted the balance.

“Non-oil revenue, at N5.56 trillion, was 19.48 and 50.36 per cent above the levels in the preceding quarter and target, respectively.

“The increase relative to the preceding quarter was driven largely by higher collections from corporate tax and Value-Added Tax. The increase relative to quarterly targets reflects improved revenue collection relative to budget expectations.”

Oil revenue declined in Q3 2024

The CBN’s report also disclosed that oil revenue declined by 24.72 per cent to N1.30 trillion in Q3 2024 compared to Q2 2024. The decline was attributed to lower receipts from petroleum profit, taxes, and royalties.

According to the report, revenue from oil sources was also 75.39 per cent short of the quarterly target due to shut-ins arising from ageing oil pipelines and installations.

How the federal revenue was distributed

Out of N6.86 trillion revenue collected and included in the federation account in Q3 2024, N3.92 trillion was distributed to the three tiers of government.

The Federal Government received N1.27 trillion, states got N1.36 trillion, and local governments received N0.99 trillion as revenue. The balance of N0.30 trillion was allocated to the 13 per cent Derivation Fund for oil-producing states.

Higher taxes, oil revenues boost FG’s earnings to N12.5 trillion in 2023

Meanwhile, TheRadar earlier reported that the increase in taxes and oil revenues contributed to the 76 per cent rise in the Federal Government’s earnings in 2023.

According to the recently released 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) from the Ministry of Budget and Economic Planning, the Federal Government’s earnings rose from N7.1 trillion in 2022 to N12.5 trillion in 2023.