Federal revenue crashes by N18.802 billion

Nigeria’s gross revenue crashed to N213.817 billion in the month of April 2016, a communique released by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant-General of the Federation, Alhaji Ahmed Idris, disclosed. The communique released Wednesday in Abuja indicated that the revenue for the month was lower than the N232.619 billion received in the previous month by N18.802 billion.

Oil Production increased slightly between December, 2015 and January, 2016 despite explosions at Escravos Terminal, Force Majeure declared at Brass Terminal as well as shut-in and shutdown of pipelines at other terminals for repairs and maintenance. However, there was revenue loss of $45.90 million as a result of drop in average price of crude oil from $39.04 in December 2015 to $29.02 in January, 2016. Also, a marginal drop in income was recorded from Oil and Gas Royalty and Import Duty.

The Federal Government, State Governments and Local Government Councils received a net statutory allocation of N207.878 billion as Federal Allocation for the month of April 2016, which was shared among the three tiers of government as follows: Federal Government 52.68%, States 26.72%, Local Governments 20.60% and 13% derivation of Mineral Revenue for oil producing states.

The distributable Statutory Revenue for the month is N213.817 billion. The sum of N6.330 billion was refunded by the NNPC to FGN. Also, there was exchange gain of N2.424 billion which was also proposed for distribution. The total revenue distributable for the current month (including VAT) is N281.500 billion.

The details of the Statutory Revenue distributable for the month of March 2016 are as follows: Federal Government received N101.215 billion (52.68%), States received N51.338 billion (26.72%), and the Local Government Councils received N39.579 billion (20.60%), while the Oil Producing States received N15.745 billion as (13% of Mineral Revenue – Oil and Gas).

Furthermore, for the month of April 2016, the gross revenue available for the Value Added Tax (VAT) was N65.259 billion as against N64.234 billion distributed in the preceding month, resulting in a decrease of N1.025 billion.

The breakdown of the Value Added Tax (VAT) distribution for the month is as follows: N65.259 billion out of which the Federal Government got N9.397 billion (15%), States got N31.325 billion (50%) and the Local Government Councils received N21.927 billion (35%).

Source: News Express.

*Photo shows Minister of Finance, Kemi Adeosun.

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