Business

Militants’ actions drop April shared allocation by N18bn

allocation

The renewed unrest in the Niger Delta area has begun to take its toll on the nation’s revenue as the amount shared by the tree tiers of government for April 2016 was reduced by N18.2 billion.

This left the governments with N281.500 billion for April, shared yesterday in Abuja by the federal, states and Local governments.

This is against the backdrop of N299.747 billion that was shared for March, 2016.

According to the Minister of Finance, Mrs Kemi Adeosun, “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.”

Adeosun noted that the drop in allocation was also due to the huge decline recorded in the price of crude oil.

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She said 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.

These developments also led a decline of N18.8 billion in gross statutory revenue from N232.61 billion in March to N213.81 billion in April.

Of the amount shared, the federal government got N101,215 billion, states received N51.338 billion while local governments got N39.579 billion.

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.

The Minister 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.

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.

 

 

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