Nigeria: Government ends year with 5.6 percent rise in revenue

Nigeria’s government revenues rose by 5.6 percent in December to 315.019 billion naira, up from 297.450 billion naira the previous month.

The rise is in spite of a slump in oil prices on the global market and challenges with production locally.

Although the price of oil on the world market is expected to remain low throughout 2016, analysts at FocusEconomics expect Nigeria’s economy to grow 4.1 percent this year spurred by a stable political environment and increased government spending on social welfare and infrastructure.

Permanent Secretary at Nigeria’s Finance Ministry, Mahmoud Isah Dutse, said “shut-ins, shut-down of production for repairs and production shortfall due to technical hitches at different terminals throughout the month” had a negative impact on crude oil and gas revenue.

He said there was a revenue loss of $143.96 million because of a reduction in export sales and a drop in the average price of crude to $43.40 in November from $49.58 in October.

Nigeria is expected to distribute 387.771 billion naira to its three tiers of government, that is federal, state and local, for the month of January, including revenues, cash from VAT, gains on the exchange rate and refunds from the state oil company of 6.330 billion naira.

Mr. Dutse said $150 million in dividends from the Nigeria Liquefied Gas Company had already been distributed in December.

The Excess Crude Account, Nigeria’s rainy day fund, remained unchanged at $2.258 billion.