From N1.22 trillion in June 2022 to N1.26 trillion in July 2022, the oil and non-oil sectors’ revenue inflow to the federation account grew by 3.28 percent.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) earned N292.8 billion for the month, while Nigeria Customs earned N190.26 billion, according to the revenue report of the office of the Accountant General of the Federation.

The oil industry paid N191.7 billion in taxes to the Federal Inland Revenue Service (FIRS), while the non-oil sector made the largest monthly contribution of N444.65 billion.

FIRS collected N190.26 billion in value-added tax (VAT), which is less than the N208.15 billion collected in June 2022.

As subsidy payments undermined oil earnings, the Nigerian National Petroleum Company (NNPC) Limited was unable to contribute money to the federation treasury for the sixth consecutive month in 2022.

Remember that demands for petroleum subsidies exceeded oil and gas earnings from crude sales by N210 billion in the first half of 2022.

NNPC reported N2.6 trillion in subsidy claims during that time, along with N2.39 trillion in gross earnings from oil and gas sales receipts. However, N1.59 trillion was taken out to partially pay for the subsidy.

The Federation Account Allocation Committee (FAAC) distributed N954.09 billion across the three levels of government from the 1.26 trillion income for July after statutory deductions.

N406.610 billion went to the federal government, N281.342 billion to the states, and N210.617 billion to local governments.

The World Bank issued a warning last year that Nigeria has the lowest revenue-to-GDP ratio in the world, dropping to between 5 and 6 percent.

This was said by Dr. Shubham Chaudhuri, the Country Director for Nigeria at the World Bank, during a panel discussion at a virtual public sector conference hosted by the Lagos Business School.