The September 2016 revenues distributed to the three tiers of government came down by N90.27bn to N420bn as against N510.27bn distributed in the month of August. This is no thanks to the activities of pipeline vandals which have continued to take its toll on government revenues.
This shortfall was in spite of the slight increase in the price of crude oil from $46.06 per barrel to $48.43 per barrel.
The Permanent Secretary Ministry of Finance, Alhaji Mahmoud Isa-Dutse, who represented the Minister of Finance and Chairman of the Federal Allocation Account Committee (FAAC), Mrs Kemi Adeosun, during a media briefing disclosed that crude oil export decreased by 1.15m barrels, which occasioned a decline of $46.06m in the federation export sales despite the rise in oil price.
The Permanent Secretary also pointed out that a fresh force majeure declared at the Bonny terminal, as well as the subsisting one at Forcados terminal and the shut-in and shut-out of pipelines for repairs and maintenance also added to the decline in revenues.
Revenues from dutiable imports, Joint Venture Cash call, Foreign Companies’ Income Tax and value added tax (VAT) also declined during the period.
The gross statutory revenue for September 2016 stood at N279.746bn which was lower than the N315.045 billion received in the August by N35.299bn.
A breakdown of the allocation revealed that the federal government received N129.6bn; States got N91.891bn while the local governments went home with N68.65bn.
Other revenues distributed for the month included exchange rate gain of N41.4bn and excess petroleum profit tax of N63.38bn.
The oil producing states received an extra N13.729bn as 13 per cent derivation for the period under review.
The sum of N6.330 billion was refunded by NNPC to the FGN while there was a proposed distribution of N63.386bn from the Excess PPT Account.
The permanent secretary also disclosed that the amount in the excess crude account remained at $2.454bn, same value as at August 2016.
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