Federation revenue drops by N107.1bn in July
Despite the increase in the volume of crude oil export in July 2018, government revenue dropped significantly by N107.1billion in the period resulting in the distribution of N714.8billion among the three tiers of government.
The Minister of Finance, Mrs. Kemi Adeosun, who confirmed this after the August Federation Account Allocation Committee, FAAC, meeting in Abuja, said the amount is lower than the N821.8billion shared in June.
Highlighting some of the factors that impacted negatively on the month’s income, the Minister said, “Crude oil exports sales volume was 3.74 million barrels showing an increase of 0.17 million barrels when compared with the previous month sales or 3.57 million barrels.
“Despite the improved revenue, production was negatively affected in the period by shut-ins and shut-down at various terminals for repairs and maintenance of ageing facilities,” the minister explained.
“The Value Added Tax, import duty, Companies Income Tax CIT and Oil Royalty decreased while Petroleum Profit Tax recorded an increase,” she said.
The sum of N597.97billion was generated as statutory revenue for the month of July, this is lower by N96.69billion than the N694.67billion revenue received in the month of June.
Giving a breakdown of the revenue generated, Mrs. Adeosun said that N376.14 billion was generated as mineral revenue while N221.8 billion came from non-mineral revenue. She said that federal government received N269.8 billion, states, N136.85 billion and the local governments, N105.5 billion.
The sum of N44.96billion was also shared among the oil producing states, representing 13 percent of the oil revenue generated in the month of January, while the equivalent of N25 million was transferred into the Excess Crude Account, putting the balance in the ECA account at $2.31billion.
On the review of the revenue reporting template between the NNPC and the FAAC, as directed by Mr. President, the Minister announced that a draft template would be ready before the next FAAC meeting, scheduled for September.
President Buhari had ordered the review of the revenue reporting template between the NNPC and the FAAC as a lasting solution for the frequent disagreements between the two parties over revenue collections.