Nigeria’s oil revenue rises by 168% above budget target

Oil revenue generated by the Federal Government as of July this year was 168 percent higher than the target in the 2020 revised budget, President Muhammadu Buhari said on Thursday.

Buhari disclosed this in his speech during the presentation of the 2021 budget proposals to the National Assembly.

He said average daily oil production was 1.88 million barrels per day up to June, as against the revised estimate of 1.80 million bpd for the entire year.

He said the market price of Bonny Light crude averaged $40.79 per barrel, significantly higher than the revised benchmark price of $28.

Buhari said, “As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion. This revenue performance was only 68 percent of our pro-rated target in the revised 2020 budget.

“At N992.45 billion, oil revenue performed well above our budget target, by 168 percent. Non-oil tax revenues totalled N692.83 billion, which was 73 percent of the revised target.”

According to him, aggregate revenue of N5.84 trillion was projected in the revised budget to fund N10.81 trillion in expenditure.

“The projected deficit of N4.98 trillion, or 3.57 percent of GDP, is expected to be financed mainly by borrowing,” the President added.