Attacks by Avengers, others cut Nigeria’s revenue for July by almost half

Niger-Delta-militants-new

Attacks by vandals, notably Niger Delta Avengers, on crude oil pipelines and other facilities, accounted for nearly 50 per cent loss of revenue to the three tiers of government in July.

The monthly Federation Accounts Allocation Committee (FAAC) meeting, which held Thursday in Abuja, declared the loss of N250.97 billion for the month, against N538.8 billion oil revenue shared in June.

The meeting, attended by representatives of the federal and 36 states and Federal Capital Territory, also reported a cut of about 2.8 million barrels in crude oil exports volume for April.

The permanent secretary, Federal Ministry of Finance, Mahmoud Dutse, attributed the huge cut to the subsisting force majeure declared at Forcados Oil terminal by oil companies.

Parties in a contract — in this case, oil firms — can declare force majeure when they are unable deliver on contractual obligations, due to unforeseen developments.

“The decrease was as a result of shut-in and shut-down of pipelines at other terminals due to the activities of vandals and for maintenance impacted negatively on production,” Mr. Dutse said.

Despite the increase in average price per barrel of crude oil at the international market in March from $38.64 to $42.21 in April, he said revenue accrual in the Federation Export Revenue decreased by $102.17 million.

Although revenues from non-oil sources declined from N279.16 billion in June to N168.41billion in July, the meeting reported a marginal increase in import duty during the month.

The Accountant General of the Federation (AGF), Ahmed Idris, in his report said the performance of Companies Income Tax (CIT) and Petroleum Profit Tax (PPT) declined drastically due to the filing of the actual annual returns by joint venture companies.

Mr. Idris also attributed it to payments made during the month, with taxes paid by blue chip companies not captured under the month, because they were made before the June 30, 2016 deadline.

The AGF said distributable statutory revenue for the month stood at about N268.8 billion, apart from about N66.99 billion from value added tax (VAT) and N6.33 billion refunded by the Nigerian National Petroleum Corporation (NNPC) to the Federal government.

The refund was part of the N450 billion oil revenues from crude oil sales between 2010 and 2011 withheld by the NNPC from the Federation Account.

Mr. Idris said the federal government was yet to commence deducting bailout funds given to states, except those with various loan obligations to fulfil with commercial banks.

He said the debt sustainability programme of the government established to help states restructure their debts was still available for them to take advantage of.

Other revenues accruals during the month, the committee said, included about N1.37 billion excess bank charges recovered from commercial banks between 2008 and 2012.

Another N70.04 billion was realised as exchange gain as a result of exchange rate differentials between naira and the dollar, in addition to about N36.49 billion arrears for May proposed for distribution.

A total of about N493.83 billion was shared during the month. The amount was about N65.2 billion lower than the allocation shared in June.

Details of the allocation to the three tiers of government showed the federal government taking about N129.2 billion, or 52.68 per cent; States N65.54 billion, or 26.72 per cent, and local governments N50.53 billion, or 20.6 per cent.

The oil bearing States were allocated N12.87 billion as 13 per cent derivation revenue for the month.

Although Lagos was recognised recently as one of the oil bearing States of the Federation, Mr. Dutse said they would not benefit from the allocation for now.

Besides, each tier of government also received N9.65 billion, N32.15 billion and N22.51 billion respectively for 15 per cent, 50 per cent and 35 per cent allocation respectively for VAT.

The balance in the excess crude revenue account was given as $3.03 billion.

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  • dan

    I thought they said last month that we no longer depend on oil revenue to fund the budget? Why does a drop in oil revenue almost cut the revenue by half?

    • George

      APC LIARS

  • Gift Ehime

    Thank you Premium Times. This story is most useful. I was on dry fasting before.

    I was praying for Nigeria to become a peaceful and prosperous country in Africa.

    After reading this story i broke my fast and went to eat hot food with lots of meat.

    I was wasting my time praying for a dead and smelly corpse to rise up and walk.

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  • joe

    By blowing up the pipelines and messing up there own backyard, what do they stand to gain from that? The story of a guy cutting his nose to spite his face! Goodluck to them.

    • George

      Don’t weep for them boy.

      When the oil was flowing freely what do they get in return

  • thusspokez

    Attacks by vandals, notably Niger Delta Avengers, on crude oil pipelines and other facilities, accounted for nearly 50 per cent loss of revenue to the three tiers of government in July.

    This claim defies logic. How can a few marauders joyriders taking pot shots at pipelines with the occasional use of dynamites, result in 50% loss of revenue? Anyone with basic knowledge of arithmetic would know that 50% is half of…

    Therefore to reduce revenue by half, would require the destruction of half of the pipelines. I don’t think even the USA can destroy half of Nigerians oil pipeline in one month of continuous bombing.

    • Omiligbon

      You were making soome sense until this statement:
      “I don’t think even the USA can destroy half of Nigerians oil export pipelines…”

      The question you must answer is: Does Nigeria have oil? Or are you referring to my Niger Delta and Biafran oil as Nigeria’s oil? U bea be very very very very very careful. There are things u should not play with.

      • Otile

        Nigeria cannot stand without SS SE oil, that’s why the Fulani Yoruba will fight to death to prevent Nigerian breakup.

        • thusspokez

          Does SE have oil of any significant quantity?

      • thusspokez

        Does Nigeria have oil? Or are you referring to my Niger Delta and Biafran oil as Nigeria’s oil?

        Well ask yourself: In which country is the Niger Delta?

        The rhetorical question is: Does biafra exist? I should say: No! Granted, how can something which does not exist have natural resources?

        my Niger Delta and Biafran oil as Nigeria’s oil?

        You never say “South-East oil” because the South-East doesn’t produce any significant amount of oil worth recording. (You think that you are too clever ) You would always say: “Niger Delta” and sneak in “biafra oil”. As if, ‘belongings by association’ whereas no such association exist between the Niger Delta and biafra — no matter how hard you try to fabricate it!

        Stop trying to claim Nigeria’s and Niger Delta oil. Ojukwu tried to do so, and the Niger Deltans immediately let him know that it was only going to happen over their dead bodies. Sadly, people like you never learn.

  • thusspokez

    loss of N250.97 billion for the month, against N538.8 billion oil revenue shared in June.

    Mind you, this is Nigeria: Someone should triple check that others are not siphoning off parts of the revenue and blaming the NDA.

    • Hassan Lawal

      ….yes o,anything can happen

    • Solomon Brown

      You do have a point,the fight against kwaruption might be corrupt itself…… No surprise anyway.

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  • B. Messi

    “It means those who can afford it can now import refined fuel and sell according to the market dictates. Therefore, the reliance on ND crude ‘oyel’ is ONLY LIMITED TO SOURCING FX and with the emphasis on so many other sectors going on, this will soon become redundant” -Kay Soyemi

    LOL!! That was what one clown ‘kay soyemi’ said months back..before he and his gullible likes were forced by baba’s shambolic performance to retreat into their smelly cocoons!
    CLOWNS!

  • truth is bitter

    I am disappointed that the AVENGERS have not reduced the export of my Niger Delta oil to zero. If you had done that, and if you had been employing the services of suicide bombers and bombing markets, schools and motor parks, or killing people in their farms and if the traditional rulers of the South had been vocal defending your (AVENGERS) actions by saying the perpetrators are from Congo or some distant foreign lands, I am sure John Kerry with his over sized Nose would have visited the South and East. Terrorism breeds recognition from US. This is advice for you.

    • Solomon Brown

      Turn it down a notch, mercantilism is here to stay, SS people have to learn to use it to their advantage.

  • Usman Dangiwa

    We should even be grateful that the Avengers have been considerate enough in their vengeance. Let them go their way and have their own country. We the North do not need them. Our religion is sufficient to sustain us with donors here and there.

    • Solomon Brown

      You can’t run an economy
      with collecting alms.

      • Höly Wähala

        Lol!

  • Otile

    Is Buhari therefore saying that without steady flow of oil from the Niger Delta Nigeria will collapse? Interesting, nobody is talking about diversifying the economy again, perhaps the voodoo economists in his kitchen have run out of ideas.

  • Otile

    When I was young was afraid of darkness, now that I am an adult I am afraid of my electric bill.

    • Imam OLODO

      …and our disabled (challenged by lack of ideas) minister of Darkness and erstwhile Chief immigration officer of Western Region is dumb and practically not visible anymore anywhere. He has been caught by the infectious blight of cluelessness that has become pervasive since Imam Olodo came on the scene. He is now impotent. Buhari ought to have sent him to immigration department or Customs or anywhere deportation or repartriation is required or to pair with InJustice Abang in the Courts.

  • PROUDLY Deltan Republic

    Just imagine all the names speaking about my oil and revenue from my Delta Republic – Alien Dutse (Katsina) and Alien Idris (Kano). Shame on all the Governor and politicians from the South and East of Nigeria. Shame on all of you Shaaaaaaaaaaaaaame. If the wealth of Nigeria were in the North will anyone from Biafra or Delta Republic be in charge of the accounting or the head of Revenue of the oil corporation?

  • Excisionist

    These parasite milking Nigeria dry without contributing anything to the economy must be stopped. I salute you Avengers !!!.