Significant growth in non-oil tax receipts in April, prompted by the gradual return of business activities to pre-COVID-19 levels, led to a 28.2 per cent increase in the federal government’s revenue, relative to the preceding month, raising the government’s revenue to N1.106 trillion, the Central Bank of Nigeria has revealed.According to the report, at N1.106 trillion, the federation receipt in April 2021 outpaced both the budget benchmark and collections in March 2021 by 28.2 per cent and 7.
This reflected the exacerbating incidence of cost ‘under-recovery,’ as reported by the Nigerian National Petroleum Corporation , it stated. However, the report disclosed that the federal government’s total outstanding contractual liabilities increased to N28.98 trillion at the end March 2021, indicating an increase of 15.8 per cent relative to March 2020 and 2.5 per cent compared to December 2020.
The CBN stated that the significant rise in debt service was due, largely, to the interest payments on additional FGN bonds, promissory notes and the redemption of the $500 million Eurobonds, which matured in January 2021. Consequently, the fiscal operations of the FGN in April 2021 contracted by 67.8 per cent, relative to the budget estimate.
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