FG, states, LGs share N370 bn as revenue drops

Minister of Finance, Kemi Adeosun
Minister of Finance, Kemi Adeosun

After a marginal increase in distributable revenue for the month of October, allocations to the three tiers of government again dropped in November following a decrease in total generated revenue during the period.

As against N473.83 billion shared in October, the various tiers got N369.882 billion at the Federation Account Allocation Committee (FAAC) meeting yesterday.

For the months of August and September, N442.606 billion and N389.93 billion, respectively, was shared by the three tiers of government.

Speaking after the monthly FAAC meeting in Abuja, the Minister of Finance, Mrs. Kemi Adeosun, said the gross statutory revenue of N400.310 billion received in November was higher than the N321.996 billion received in the previous month by N78.314 billion.

According to her, the intermittent shutdown and shut-in of production for repairs and maintenance at different oil terminals during the month continued to impact crude oil and gas revenue negatively.

Giving a breakdown of allocations to the various tiers for November, she said the federal government got N139.105 billion, states N70.757 billion, and local governments N54.551 billion.

She also stated that there was a revenue loss of $1.3 million as a result of the drop in the average price of crude from $47.315 in August to $46.96 in September 2015.

The minister disclosed that non-oil revenue recorded a significant improvement in the month, rising by N104.212 billion more than the previous month’s non-oil receipts.

With distributable statutory revenue for the month standing at N400.310 billion, the sum of N6.330 billion was refunded to the federal government by the Nigerian National Petroleum Corporation (NNPC).

There was also an exchange rate gain of N6.995 billion which was also distributed.

Responding to a question as to what the response of the administration would be to dwindling oil revenue, the minister said non-oil revenue was the plank on which the economy would be anchored in 2016 and beyond.

“Non-oil revenue is now making a difference compared to oil revenue. It’s a very positive sign. We will make sure people are paying taxes. Non-oil revenue is not volatile like oil revenue and more sustainable. It is our policy direction,” Adeosun said.

She said the Excess Crude Account (ECA) remained unchanged at $2.258 billion and disclosed that the federal government was determined to make the welfare of workers a priority, adding that the payment of salaries had commenced to ensure that they celebrate the Christmas and New Year festivities. (Thisday)


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