Revenues collected by the Federal Government dropped by about N154.56 billion in July, the Minister of State for Finance, Bashir Yuguda, said on Tuesday.
Mr. Yuguda said this at the end of the Federation Accounts Allocation Committee, FAAC, meeting in Abuja and added that only about N630.32 billion revenue was realized during the month, down from N784.88 billion collected the preceding month.
Mr. Yuguda attributed the sharp decline in revenue to Force Majeure declared by Shell Petroleum Development Company, SPDC, and a series of shutdown of trunk lines and pipelines at various terminals.
Force Majeure is always declared by a company to bring to the attention of their customers about unforeseen developments in their operations that may likely make meeting obligations to scheduled contracts difficult or impossible.
Mr. Yuguda also identified the substantial decline experienced by the Federal Inland Revenue Service, FIRS, in their Companies Income Tax, CIT, collections as also contributory to the dip in revenue for the month under review.
In spite of the shortfall in revenue accruals, the minister said FAAC still distributed a total sum of N654.58 billion to the three tiers of government as allocation from all revenue sources, an amount that is N30.31 billion more than what was shared in June.