SAN FRANCISCO, May 26, (THEWILL) – The monthly allocation shared among the federal, states and Local governments dropped by N18.2 billion, as a total of N281.500 billion for April, was shared by the three tires of government.
Minister of Finance Kemi Adeosun declared that the drop in allocation, from N299.747 billion shared in March, was as a result of the huge decline recorded in the price of crude oil.
She revealed that there was a revenue loss of $45.9m as a result of the drop in average price of crude oil from $39.04 in December, 2015 to $29.02 in January.
Adeosun announced that N6.330 billion was refunded by the Nigeria National Petroleum Corporation (NNPC) to the Federation Account while N2.424 billion being the exchange gain was equally shared by FAAC stakeholders.
“While oil production increased slightly between December 2015 and January 2016 despite explosions at Escravos terminal, the force majeure declared at Brass terminal, shut-in and shut-down of pipelines at other terminals for repairs maintenance affected government revenues,” she said.
To this end, gross statutory revenue from also dropped from N232.61 billion in March to N213.81 billion in April showing a decline of N18.8 billion.
The statutory revenue distributable also dropped to N207.878 billion as against N226.875 billion previously shared in March.
She revealed that the federal government got N101,215 billion, states received N51.338 billion while local governments got N39.579 billion.
Also, the oil producing states got N15.745 billion as their 13 per cent derivation while balance in the Excess Crude Account (ECA) now stands at $2.261 billion.
For Value Added Tax (VAT) distribution, the minister said N9.39 billion was allocated to the Federal Government, states received N31.32 billion while the local government councils were allocated N21.92 billion.
Story by David Oputah
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