Business

Oil price fall: Nigeria loses $144m in one month

$5.6bn recorded as oil and gas firms count losses in militants' attacks

Nigeria lost $143.9 million as a result of reduction in federation export sales and drop in the average price of crude oil from 49.58 dollars in October to 43.4 dollars in November, 2015.

This was made known by the Minister of Finance, Mrs Kemi Adeosun, on Tuesday in Abuja while addressing newsmen on the outcome of the Federation Accounts Allocation Committee (FAAC) meeting.

According to her, acts of vandalism on oil pipelines among other factors are impacting negatively on oil revenue generation, adding, that shut-in, shut-down of production for repairs, production shortfall due to technical hitches at different terminals throughout the month impacted negatively on crude oil and gas revenue.

She also revealed, that the three tiers of government, namely federal state and local shared the sum N387.8 billion as revenue for December, 2015.

This month’s allocation shows an increase of N17.9 billion, from the N369.9 billion shared in November.

Adeosun, who was represented by Mr Mahmoud Isa-Dutse, Permanent Secretary in the Ministry of Finance, said the shared amount comprised the month’s statutory revenue of N315 billion, including N6.3 billion refunded to the federation account by Nigerian National Petroleum Corporation (NNPC).

According to her, “Also, there is the exchange gain of N4.5 billion which is proposed for distribution.

Read also: Nigeria loses N78m daily in gas revenue

“Therefore, the total revenue distributable for the month of December, including VAT of N62 billion, is N387.8 billion,” she said.

Giving the breakdown of revenue among the three tiers of government, Adeosun said the Federal Government received N147.5 billion, representing 52.68 per cent while states got N74.8 billion, representing 26.72 per cent.

The local governments, she said, received N57.7 billion, amounting to 20.60 per cent of the amount distributed. She said N42.05 billion, representing 13 per cent derivation revenue was shared among the oil producing states.

Adeosun also announced that during the month under review, Nigeria Liquified Natural Gas paid a dividend of $150 million which had earlier been distributed to the three tiers of government.

The minister said the country generated N214.6 billion as mineral revenue and N100.3 billion as non-mineral revenue in December.

 

 

 

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We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.
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