Monthly revenue shared by the three tiers of government fell by N90.27 as pipeline vandals in the Niger Delta continue to sabotage the nation’s economy
The three tiers of government yesterday shared N420billion for the month of September compared to N510.27 billion shared in August.
The revenue decline is attributed to activities of pipeline vandals in the Niger Delta region. The marginal increase in crude oil price from $46.06 per barrel to $48.43 per barrel in the current period didn’t impact much as the volume of crude oil production dropped by 1.15 million barrels.
Permanent Secretary of the Ministry of Finance, Alhaji Mahmoud Isa Dutse, who briefed the media after the Federation Account Allocation Committee (FAAC) meeting, said crude oil export decrease by 1.15million barrels resulted in a decline of $46.06 million in revenue.
A breakdown of the allocation has shown that the federal government received N129.6 billion; states got N91.891 billion while local governments got N68.65 billion.
Other revenues distributed for the month include; exchange rate gain of N41.4 billion and excess petroleum profit tax of N63.38 billion.
The oil producing states received N13.729 billion as 13 per cent derivation for the period.
The permanent secretary also stated that the amount in the excess crude account remained at $2.454 billion, same value as at August 2016.
Revenues from dutiable imports, 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 N279.746 billion which was lower than the N315.045 billion received in the previous month by N35.299 billion.
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.