Analysis of the receipts indicated that oil revenue (gross) accounted for N8.02 trillion (19.8 per cent of GDP), representing 75.3 per cent of the total. It surpassed the 2012 budget benchmark of N6.6 trillion by 20.9 per cent, but was below the 2011 receipts by 9.6 per cent.
A breakdown showed that, relative to the preceding year, revenue from crude oil and gas exports fell significantly by 22.2 per cent to N1.7 trillion. Similarly, receipts from domestic crude oil sales declined by 28.2 per cent to N1,874.2 billion, while revenue from petroleum profit tax (PPT) and royalties increased by 9.8 per cent to N4.36 trillion.
Also, the Federal Government earned N10.65 trillion for the year. The earnings represented 26.3 per cent of Gross Domestic Product (GDP), earnings into the Federation Account substantially exceeded the N9.6 trillion budget benchmark for the 2012 fiscal year.
The development was attributed to the buoyed receipts from oil and non-oil sources. The sum of N6.5 trillion was transferred to the Federation Account (net) after all deductions, and exceeded the target set in the 2012 budget.
It said the fiscal operations of the Federal Government resulted in an overall deficit of N975.7 billion, or 2.4 per cent of GDP.
Provisional data on state government finances indicated an overall deficit of N272.4 billion, while that of the local governments represented a deficit of N2.4 billion. Consequently, the general government consolidated expenditure was N10.09 trillion, or 24.9 per cent of GDP, while aggregate revenue was N8.9 trillion. This resulted in an overall deficit of N1.1 trillion, or 2.9 per cent of GDP, which was financed largely from domestic sources.
About N1.1 trillion was deducted from gross oil receipts for the Joint Venture Cash (JVC) calls, N2.7 trillion in respect of excess crude /royalty proceeds and “others”, leaving a net distributable balance of N4.1 trillion for the three tiers of the government.
The report said asset quality of the banks, as measured by the ratio of nonperforming loans to industry total, improved substantially as it declined from 4.95 per cent at end-December 2011, to 3.47 per cent at end-December 2012. The average industry liquidity ratio (LR) stood at 63.9 per cent, and exceeded the prescribed LR of 30 per cent, compared with 69.1 per cent at end-December 2011.
It said on-site reviews were carried out on 1,196 Other Financial Institutions (OFIs). The exercise included the examination of 936 OFIs and the conduct of spot-checks on 260 bureaux-de-change (BDCs).
The on-site examination of 791 MFBs showed that 68.3 per cent met the capital adequacy ratio (CAR) of 10 per cent, compared with 70.4 per cent in 2011. Six hundred and fifty-two MFBs or, 82.4 per cent, complied with the minimum liquidity ratio (LR) of 20 per cent as against 84.0 per cent in 2011. The average liquidity ratio of the institutions was 62.3 per cent, which exceeded the prescribed minimum LR of 20 per cent, compared with 84.0 per cent in 2011.
However, the asset quality of the banks deteriorated as their portfolio-at-risk (PAR) ratio increased to 61.9 per cent, from 46.0 per cent in 2011. This was attributed to the fact that most of the institutions were yet to articulate and adopt appropriate risk management frameworks to mitigate the credit risks inherent in their operations.
Information from The Nation was used in this report.