Written by Sarah NEGEDU

FG gets 53% of November revenue allocation

Over N369 billion was last week distributed among the three tiers of government, as statutory allocation for November 2015, the federal government has said.

Briefing journalists at the end of the monthly outcome of the Federation Accounts Allocation Committee meeting in Abuja, Minister of Finance, Mrs Kemi Adeosun, said the November allocation witnessed a decline of N103.95billion from the N473.83bn distributed in October.

She said the N369.88bn available for distribution for the month was realized from four major sources; statutory revenue of N297.45billion, Value Added Tax, N61.18billion, Exchange gain, N4.92billion and refund made by the Nigerian National Petroleum Corporation for debt owed the Federation Account, N6.33billion.

Giving the breakdown, Adeosun said the Federal Government received N139.5 billion, representing 52.68 percent, while the states got N70.7 billion, representing 26.72 percent and local governments received N54.5 billion, representing 20.60 percent of the amount distributed.

N25.6 billion representing 13 percent derivation revenue was also shared among the oil producing states, even as the country generated N198.5 billion as mineral revenue and N98.8 billion as non-mineral revenue.

A communiqué issued at the end of the meeting showed a decrease of N11.3 billion and N114.2 billion from what the country generated as mineral and non-mineral revenue in the preceding month.

The balance in the Excess Crude Account at stood at 2.25 billion dollars, which showed that nothing had been removed or added to it since July.

On VAT revenue, the Minister said after deducting cost of collection, the Federal Government got N8.8bn; the states, N29.36bn; and local governments, N20.55bn.

Adeosun attributed the decline in allocation to reduction in revenue, which was caused by shutdown and shut-in in crude oil production at various terminals during the period.

She said even though the oil revenue was currently down, non-oil revenue was beginning to make up for the shortfall.

“The gross statutory revenue of N297.45bn received in the month was lower than the N400.3bn received in the previous month by N102.86bn. Ongoing maintenance and the shutdown and shut-in of production for repairs at different terminals during the month continued to impact crude oil and gas revenue negatively.

 “Also, there was revenue loss of 19.4 million dollars as a result of drop in federation export, even though the average price of crude oil increased from 46.9 dollars per barrel in September to 49.5 dollars per barrel in October", she said.

She however added that there was distribution of 150 million dollars being Liquefied Natural Gas dividends, adding that it had previously been approved by the National Economic Council, NEC, noting that the increase in non-oil revenue was a sign that the economy was already showing non-dependence on crude oil alone. “Non-oil is beginning to play its part and that is a very positive sign, and I think that is something we should work together with by making sure that people paid their taxes and improve revenue collection.”

She said the administration had continuously emphasized diversification of the economy and that it was on track to ensure that.

 

“Even though the revenues for the month are actually down, if you analyse it, non-oil revenue is now really making a difference compared to oil. We should improve collections in those non-oil revenue generating agencies, because those revenues are not as volatile or subject to oil price. They are most sustainable and those are the signs that we are looking for, that those non-oil revenues should be more stable and significant and to keep growing. So, that is our policy direction,” she said.

 

 

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