REVENUE ALLOCATION TO STATES,FG AND LG DROPPED BY N65BN IN JULY 2016

The revenue accrued for allocation to the federal, states and local governments dropped by N65bn in July, from N559bn realised in June, the Federal Ministry of Finance has said. 

 
A Reuters’ report at the weekend said that militant attacks had hit oil revenues and caused decline in distributable revenue among the three tiers of government to N494bn in July.

Nigeria, a member of the Organisation of Petroleum Exporting Countries (OPEC), relied on crude sales for about 70 per cent of its income and faced hard times due to the fall in global crude oil prices since mid-2014.

Militants have carried out a series of attacks on oil facilities in the southern Niger Delta energy hub in the last few months, reducing oil output by 700,000 barrels a day.

The permanent secretary in the ministry of finance, Mahmoud Isa-Dutse, said: “Crude oil export volume decreased... partly because of a subsisting force majeure declared at (Shell’s) Forcados Terminal.

“Also, shut-in and shut-down of pipelines at other terminals due to the activities of vandals and maintenance impacted negatively on production.”

The distributable revenues included value added tax payments of N64.308bn, the finance ministry said.