The federally collected revenue generated in August was, however, below the budget benchmark of N846.84bn by 9.4 per cent.
The CBN said in its latest economic report that the increase in revenue was attributable to improved receipts from oil revenue sources.
“Retained revenue of the Federal Government in August 2020 was N290.31bn, while total expenditure stood at N699.70bn, resulting in a deficit of N409.39bn,” it said.
The central bank noted that oil revenue increased substantially in August due to improved collection from Petroleum Profit Tax and royalties, which rose by 103.9 per cent, compared with receipts in July.
It said, “With regard to non-oil revenue performance, collections fell below their levels in July 2020 and August 2019 by 24.6 per cent and 15.1 per cent respectively.
“Notably, receipts from Corporate Tax declined by 45.4 per cent and 30.7 per cent vis-à-vis July 2020 and August 2019 positions respectively.
“Value Added Tax, however, increased by 2.9 per cent and 40.8 per cent in comparison with receipts in July 2020 and August 2019 respectively.”
The CBN said the revenue profile of the Federal Government revealed subsisting revenue challenges arising from subdued economic activities.
It said the total retained revenue of N290.31bn recorded in August was significantly below the budget benchmark by 40.3 per cent.
According to the report, all the revenue heads fell short of their benchmarks, except Federation Account receipts, which exceeded its target by 19.1 per cent.
It said the Federal Government’s total debt outstanding stood at N31.01tn at the end of June 2020, with the domestic and external components accounting for 63.4 per cent and 36.6 per cent respectively.
The CBN said, “The outlook for the domestic economy remains uncertain, shaped by the twin shocks of the COVID-19 pandemic and the slow recovery in oil prices.
“However, upside risks exist on the back of judicious government intervention programmes. Growth is expected to remain subdued for the rest of the year, consequent on tepid economic activity.”
It said projections showed that real Gross Domestic Product would contract in the third and fourth quarters, although the degree of contraction would be moderate, relative to that recorded in the second quarter.