- Revenue drops by N107bn
BY COBHAM NSA, ABUJA – With the controversy surrounding Nigerian National Petroleum Corporation (NNPC)’s monthly remittances to the Federation Account still unresolved, the three tiers of government on Thursday shared N714.809 billion as income for July 2018.
This is as indications emerged that the NNPC will be ready next month with the new reporting template ordered by President Muhammadu Buhari to address issues of deficient transmittal into the Federation coffers.
Minister of Finance, Mrs Kemi Adeosun, who presided over the FAAC meeting, said the July figure indicated a N107.1 billion drop compared to the distributable revenue in June.
She said of the shared funds, N597.975 billion accrued from earnings into the Federation Account, with the balance coming from Value Added Tax (VAT), adding that N376.14 billion came from mineral revenue, while non-mineral resources generated N221.8 billion.
According to her, the federal government got N269.825 billion; the states received N136.859 billion; with N105.512 billion going to the Local Governments.
The Minister also said an additional N44.964 billion, representing 13 per cent derivation, went to the nine oil producing states, while N40.815 billion was payment as cost of collection to the Nigeria Customs Service (NCS) and the Federal Inland Revenue Service (FIRS).
Mrs Adeosun said the crude oil export sales volume for the month of July was 3.74 million barrels, resulting in improved revenue from federation crude oil exports, as against the preceding month’s figure of 3.57 million barrels.
Giving insights on the FAAC outcome, the Minister stated that several factors were responsible for the negative impact on the generated revenue for this month, adding that; “Despite the improved revenue, production was negatively affected in the period by shut-ins and shut-down at various terminals for repairs and maintenance of ageing facilities.”
She however explained that; “The value Added Tax (VAT), import duty, Companies Income Tax (CIT) and Oil Royalty decreased, while Petroleum Profit Tax recorded an increase.”
Mrs Adeosun hinted that the Excess Crude Account (ECA) currently stands at $2.332 billion following the transfer of an equivalent of N25 million into it this month
On the new reporting template expected from the NNPC, the minister said the President is eager to have a situation where Ministry of finance, Office of the Accountant General of the Federation (OAGF), Director, Home Finance and the NNPC will have smooth and hitch-free reconciliation of revenue figures every month.
She therefore assured that template would be ready before the next FAAC meeting holding in September.