Nigeria recorded its highest revenue inflow in recent time last month with a total gross revenue of N3.143 trillion.
The Federation Accounts Allocation Committee (FAAC) attributed the rise in revenue to significant increase in oil and gas royalty and Common External Tariff (CET) levies.
According to FAAC, the strong performance in oil and gas royalty revenue reflects a rebound in crude oil prices and increased production volumes.
This comes amid intensified efforts by the Nigerian National Petroleum Company Limited (NNPCL) and relevant agencies to curb crude oil theft and improve revenue collection in the upstream sector.
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FAAC added that the rise in CET levies, which apply to imports within the Economic Community of West African States (ECOWAS), showed the improved trade compliance and increased customs enforcement in the region.
In a communiqué released after its monthly meeting, FAAC noted a considerable drop in some critical revenue components, such as: Excise Duty; Value Added Tax (VAT); Import Duty; Petroleum Profit Tax (PPT); Companies Income Tax (CIT) and Electronic Money Transfer Levy (EMTL).
A source at the FAAC meeting told The Nation that the decreases were tied to broader economic challenges, including subdued consumer spending, declining import volumes, and lower corporate profitability during the review period.
The source said: “Decline in Excise Duty and VAT revenues signals waning consumer demand, a development that aligns with current inflationary pressures and weakened purchasing power among Nigerians. Similarly, the drop in Import Duty indicates a possible slowdown in international trade activities, possibly due to foreign exchange constraints and global economic uncertainties.
“The mixed revenue performance points to the challenges Nigeria faces in diversifying its income base and enhancing tax collection efficiency”.
