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Recession bites harder as FG’s revenue dips by N90.27bn, 3 tiers share N420bn

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The federal Ministry of Finance has said federation income dipped by N90.27bn for the month of September.

Figures released by the Federation Accounts Allocations Committee after its meeting in Abuja Friday showed that the total amount realised for September stood at N420bn, which was N90.27bn less than the N510.27bn that accrued in the month of August.

The statistics further indicated that the amount realised was at variance with the N509.11bn that was projected for the month of September.

The total amount available for distribution to the three tiers of government was N420bn from the following sources: statutory revenue, N250.95bn; Value Added Tax, N64.27bn; exchange gain, N41.4bn; and excess Petroleum Profit Tax, N63.39bn.

Explaining the dip in revenue, the Permanent Secretary, Federal Ministry of Finance, Mr. Mamudu Dutse, who chaired Thursday’s FAAC meeting, attributed it to lower volume of oil exports.

According to him, “The gross statutory revenue of N279.75bn received for the month was lower than the N319.05bn received in the previous month by N35.29bn.

“Crude oil export volume decreased by 1.15 million barrels in June. The decrease caused a revenue decline of $46.52m in federation export sales despite the increase in the average price of crude oil from $46.06 per barrel in May to $48.43 per barrel in June.

“Force majeure was declared at the Bonny Terminal and there was a subsisting force majeure at the Forcados Terminal. Shut-in and shutdown of pipeline for repairs and maintenance also contributed to the drop in revenue.”

 “There were decreases in volume of dutiable imports receipts from Joint Venture Cash Call, Foreign Companies Income and Value Added Tax.

“The distributable statutory revenue for the month is N250.95bn. There is a proposed distribution of N63.39bn from the excess PPT Account. Also, exchange gain of N41.4bn is proposed for distribution. The total revenue distributable for the month is N420bn.”

He added that the Nigerian National Petroleum Corporation refunded a total of N6.33bn to the Federal Government within the period under review.


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