2010 Revenue Generation Supercedes 2009 By 50% – CBN

The Federal Government has generated a total of N7.304 trillion in revenue in 2010, as against the N3.710 trillion realised  in 2009, which represent 50.8 per cent increase.

The Central Bank of Nigeria (CBN), disclosed this in its 2010 annual report, posted in its website.

The report stated that total revenue generated in the year under review, constituted 24.8 per cent of Nigeria’s Gross Domestic Production (GDP) and attributed the significant revenue growth to enhanced receipts  from both oil and non oil revenue sources.

It explained that out of the total receipts, oil revenue (gross accounted for N5.396 trillion (18.3 per cent of GDP) indicating an increase of 69.1 per cent above the level of 2009.

It explained : “A breakdown showed   that revenue from crude oil and gas exports increased significantly by 88.9 per cent to N1.696 trillion. In the same vein,  receipts from petroleum profit tax (PPT) and royalties increased  by 54.8 per cent to N1.945 trillion, while  revenue from domestic crude oil sales increased by 83.2 per cent to N1.746 trillion”.

It showed that the computed  average Capital Adequacy Ratio (CAR) of the banks indicated that 16 met the stipulated minimum required  10 per cent, compared with 13 per cent at the end of December 2009. It also reveled  that the asset quality of the banks, as measured by the ratio of non-performing  loans to industry total, improved substantially as it declined from 32.8 per cent at the end  -December  2009to 15.5 per cent at end-December 2010.

“The ratio was below the industry threshold of 20 per cent maximum prescribed for systemic distress. The development was attributed  to the  acquisition of non-performing loans in the industry by the newly Asset Management Corporation of Nigeria (AMCON). The  average industry liquidity  ratio stood at 47.5 per cent and  was above the 25 per cent minimum requirement. All the banks met the stipulated ratio  compared  with 21  per cent in the preceding year. The development indicated that the overall health of the industry had improved. The monetary policy measures implemented in 2010 substantially improved liquidity conditions in the banking system, thereby ameliorating, to a large extent, the challenge  of credit crunch in the banking system. The  sustenance of banking reforms, unrestricted access to the discount window and the guarantee of inter bank transactions increased the level of confidence in the banking system.

“How ever, despite the improvement  in the banking system liquidly , the under performance of re serve money and monetary aggregates  persisted, as reflected by the lower-than –optimal benchmark levels  in reserve money, broad money supply (m2) and  private sector  credit”, it added.