Finance Minister, Adeosun

 

By CLEMENT NWOJI, Abuja

 

Revenues accruing to the Federation Account of Nigeria decreased by N19.6 billion within the month of January, 2018.

This gave rise to the sharing of N635.55 billion by the Federation Accounts Allocation Committee (FAAC) for the month January, Thursday, less than the sum of N655.177 billion shared to the three tiers of government (Federal, States and Local Governments) in December, 2017.

Nigeria’s Accountant-General of the Federation, Ahmed Idris, gave insight on the reasons for the decreases in revenue for the month under review while briefing journalists on the outcome of the monthly FAAC meeting, in Abuja.

He said: “Operational challenges caused a decrease in crude oil export by 0.36 million barrels which reduced revenue from export sales for the federation by 113.86 million dollars.

“However, the average price of crude oil increased from 56.83 dollars to 57.71 dollars per barrel during the period.

“Other major issues that impacted negatively on operations were the shut-ins and shut-downs of production at various terminals for repairs and the Force Majeure declared at Bonny Terminals.”

The breakdown of the revenue showed that N404.79 billion was generated as mineral revenue while that of non-mineral revenue was N134.11 billion.

Although, the Accountant General noted that there was significant increase from oil royalty, Value Added Tax (VAT) and revenues from Import Duty increased marginally, he said income from Petroleum Profit Tax and Companies Income Tax decreased within the month under review.

According to Idris, the Federal, States and Local governments respectively received N249.3 billion, N126.48 and N97.51 billion.

This was less than that distributed in December, 2017, thus: federal government N252.543 billion, states N128.093 and local governments N98.755.