Written by Sarah NEGEDU

FG revenue appreciates despite falling oil price

Regardless of the tumbling oil prices and the repeated shut-ins, shut-downs of production lines for repairs in recent times, the federal government says it realized a 5.6 percent increase in the nation’s revenue for the month of December 2015.

The country recorded an increase from N297.450 billion in November, to N315.019 billion in December.

Briefing journalists at the end of this month’s Federation Accounts Allocation Committee, FAAC, permanent secretary, Ministry of Finance, Alh. Mahmoud Dutse, said though the country recorded a slight increase in revenue, the production shortfall due to technical hitches at different terminals throughout the month had a negative impact on crude oil and gas revenue. He said there was a revenue loss of $143.96 million because of a reduction in export sales and a drop in the average price of crude to $43.40 in November from $49.58 in October.

The monthly allocation to the three tiers of government also recorded an increase of N17.88. The federal, state, and local governments shared N387.771 billion for the month of December, as against the N369.8 billion shared in the previous month.

Dutse said the money was distributed from statutory allocation of N315.01 billion, Value Added Tax of N62.07 billion, exchange gain of N4.35 billion; and refund made by the Nigeria National Petroleum Corporation for debt owed the Federation Account, N6.33 billion.

The permanent secretary added that $150 million in dividends from the Nigeria Liquefied Gas Company had already been distributed in December, noting that the Excess Crude Account however, remained unchanged at $2.258 billion.

Giving a further breakdown, he said the federal government received N147.56 billion from statutory allocation, after deducting the cost of collection, while states got N74.84 billion and N57.7 billion was allocated to the local governments.

The federal government also received N8.93 billion from VAT, representing 15 percent of the total, states got N29.79 billion or 50 percent and local governments went away with N20.85 billion representing 35 percent.‎


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