Revenue Drops As FG, States Share N420bn

Minister of Finance, Kemi Adeosun

FG as well as state and local government councils shared N420bn as revenue for September. This is N90.2bn short of the N510.3bn shared in August.

Minister of Finance, Kemi Adeosun disclosed this in Abuja at the monthly revenue allocation to Federal, States and Local Governments.

Permanent Secretary of the Ministry of Finance, Mr Mahmoud Isa-Dutse who represented the minister attributed the decline to the loss of $45.5m in Federation export sales. This is despite the increase in average price of crude oil from $46.06 per barrel in May to $48.4 in June.

“Force Majeure was declared at Bonny Terminal and there was a subsisting Force Majeure at Forcados Terminal. Shut-in and Shut-down of pipelines for repairs and maintenance also contributed to the drop. Also, there were decreases in volume of dutiable imports receipts from Joint Venture Cash Call, Foreign Companies Income Tax and Value Added Tax.”

FG Gives Breakdown of Revenue Generated In September

The Minister said N420 billion for September was generated out of which N250.9bn was from the distributable Statutory Revenue of the month.

She added that N6.33bn was refunded by the NNPC to the Federation, N63.4bn from the Excess Petroleum Profit Tax account, exchange gain of N41.4bn and VAT, N64.2bn.

Adeosun said after deductions as cost of collection by FIRS, Customs and DPR, FG received N120.4bn, representing 52.68%, States got N61bn, representing 26.72% and local governments received N47bn, amounting to 20.60% of the amount distributed.

She also announced that N13.7bn, representing 13% derivation revenue, was shared among the oil producing states.

According to the Minister, Nigeria generated N135.4bn from mineral and N144.3bn from non-mineral. This showed a decrease of N23.3bn and N12bn in revenue generated in the months of August and September.

She said that the balance in the Excess Crude Account remains 2.45 billion dollars.

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