– The minister of finance, Mrs Kemi Adeosun has said that three tiers of government shared N420 billion as revenue for September
– She said the revenue allocation to federal, states and local government for September dropped by N90.2 billion
– On how the N420 billion was generated, Adeosun said that N250.9 billion was from the distributable Statutory Revenue of the month
The News Agency of Nigeria reports that three tiers of government shared N420 billion as revenue for September as against N510.3 billion shared in August.
The minister of finance, Mrs Kemi Adeosun through her permanent secretary, Mr Mahmoud Isa-Dutse, said this in Abuja on Thursday, October 20, at the monthly revenue allocation to federal, states and local governments.
She said the revenue allocation to federal, states and local government for September dropped by N90.2 billion.
Adeosun credited the drop to the loss of 45.5 million dollars in federation export sales, despite the increase in average price of crude oil from 46.06 dollars per barrel in May to 48.4 dollars in June.
“Force Majeure was declared at Bonny Terminal and there was a subsisting Force Majeure at Forcados Terminal.
“Shut-in and shut-down of pipelines for repairs and maintenance also contributed to the drop in revenue.
“Also, there were decreases in volume of dutiable imports receipts from joint venture cash call, foreign companies income tax and value added tax,” she said.
Giving a breakdown of how the N420 billion revenue for September was generated, Adeosun said that N250.9 billion was from the distributable statutory sevenue of the month.
She said that N6.3 billion was reimbursed by the Nigerian National Petroleum Corporation (NNPC) to the federation, N63.4 billion from the excess petroleum profit tax account, exchange gain of N41.4 billion and VAT, N64.2 billion.
Adeosun said after deductions as cost of collection by FIRS, Customs and DPR, the Federal Government received N120.4billion, representing 52.68 per cent; states and N61 billion, representing 26.72 per cent.
The local governments, she said, received N47 billion, amounting to 20.60 per cent of the amount distributed adding that N13.7 billion, representing 13 per cent derivation revenue, was also shared among the oil producing states.
Adeosun said that the country generated N135.4billion as mineral revenue and N144.3 billion as non-mineral revenue.
She said this showed a decrease of N23.3 billion and N12 billion from what the country generated as mineral and non-mineral revenue in the months of August and September.
She said that the balance in the Excess Crude Account remains 2.45 billion dollars.
Meanwhile the chairman, commissioners of finance forum, Mr John Inegbedion, said the lower revenue generated for the month would put a strain on the finances of states and local government.
He urged support from all persons to help in bringing down the activities of these unscrupulous persons.
Recall that the minister of finance expressed assurance that Nigeria will overcome its economic challenges without taking loan from the International Monetary Fund (IMF).
According to a statement issued by Festus Akanbi, the minister’s special adviser on media, on Saturday, April 16, Adeosun revealed that Nigeria was adapting to its new realities by implementing fiscal policies to steer the country back on track.