Revenues distributable to the three tiers of government fell by N90.27billion to N420billion for the month of September 2016 compared to N510.27 billion distributed in the previous month, as the activities of pipeline vandals continues to take its toll on government income.
This was in spite of the slight increase in the price of crude oil from $46.06 per barrel to $48.43 per barrel in the current period.
Permanent Secretary of the Ministry of Finance, Alhaji Mahmoud Isa-Dutse, who briefed the media after the Federal Allocation Accounts Committee (FAAC) meeting on Thursday, stated that crude oil export decreased by 1.15million barrels, which resulted in a decline of $46.06million in the federation export sales despite the rise in oil price.
Isa-Dutse noted that a fresh force majeure declared at the Bonny terminal, coupled with the subsisting one at Forcados terminal as well as the shut-in and shut-out of pipelines for repairs and maintenance also contributed to the decline in revenues.
Revenues from imports duties, Joint Venture Cash call, Foreign Companies’ Income Tax and Value Added Tax (VAT) also declined during the period.
The gross statutory revenue for September 2016 stood at N279.746billion which was lower than the N315.045billion received in the previous month by N35.299billion.
A breakdown of the allocation showed that the Federal Government received N129.6billion; States got N91.891billion while the Local Governments got N68.65billion.
Other revenues distributed for the month included exchange rate gain of N41.4billion and excess petroleum profit tax of N63.38billion.
The oil producing states received N13.729billion as 13 percent derivation for the period.
The Permanent Secretary also stated that the amount in the excess crude account remained at $2.454billion, the same value as at August 2016.
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