Militant Attacks Slash Nigeria Revenue in May, Central Bank Saysby
Nigeria’s revenue fell to the lowest in at least one year in May as militant attacks in the oil-producing Niger River delta caused crude production to slump.
The federal government collected 384.9 billion naira ($1.2 billion) of revenue in May, down 1.6 percent from April, the Central Bank of Nigeria said in a report posted on its website on Tuesday. That was 53 percent below the government’s budget estimate of 814.9 billion naira, the central bank said.
“Pipeline destruction, vandalism and the persistent decline in crude oil prices contributed to the decline,” according to the report. “Non-oil revenue, at 199.1 billion naira, or 51.7 percent of the total revenue, fell short of both the provisional monthly budget estimate of 362.3 billion naira and the preceding month’s level by 45 and 2.7 percent, respectively.”
President Muhammadu Buhari in May approved a record 6.1 trillion naira budget with a deficit of 2.2 trillion naira, or 2.1 percent of gross domestic product, to boost an economy on the brink of recession. The International Monetary Fund said last week Africa’s biggest economy would shrink 1.8 percent this year.