The Central Bank of Nigeria (CBN) announced Monday that the country earned $799.10 billion in crude oil sales in the first quarter of the year (Q1 2022).

Digging deeper
However, this was significantly less than the current 2.38 trillion oil revenue forecast, and marked a 28.3% decrease from the 1.12 trillion realized in Q4 2021. The bank also stated that the current fiscal picture for the near term is less hopeful, as government revenue remains hampered by the weight of petrol subsidies and lower-than-expected crude oil production.

What’s happening
Despite the current fiscal restrictions, the study indicated that debt service commitments in Q1 totaled 897.17 billion, up from 428.60 billion in Q4, owing mostly to principal repayments and paying maturing debts. Domestic debt made up 60.1% of total debt, while external debt obligations made up 39.9%. The Federal government’s contingent liability which also constitutes State governments’ external debt accounted for 36,761.22 billion of the total public debt outstanding, while the state government’s domestic debt stock accounted for the remaining 4,842.84 billion.

Looking forward
Non-oil revenues grew to 1.73 trillion from 1.48 trillion in the previous quarter but fell short of the 2.22 trillion targets for Q1.

According to the apex bank, federally collected revenues decreased to 1.67 trillion in the review period, down from 1.93 trillion in the previous quarter and falling short of the 3.55 trillion targets.

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