Nigeria: Oil revenue down by N28.4 billion, as federal, state govts. shared N387.8 billion in December

Minister of Finance, Kemi Adeosun

Nigeria lost a total of $143.96 million (about N28.4 billion) oil revenue, as federal, states and local governments shared N387.8 billion statutory allocation for December 2015.

In line with approved estimates in the 2015 budget, oil mineral revenue for December 2015 was expected to be N323.5 billion.

But, due to the inability of the government to increase its oil exports as a result of the negative impact of declining crude oil prices at the international market, actual revenue realised for the month was N214.7 billion, according to the Accountant General of the Federation, Ahmed Idris.

Mr. Idris explained in the communiqué issued at the end of the Federation Accounts Allocation Committee, FAAC, meeting in Abuja on Tuesday that the amount fell short of the estimated target by about N108.8 billion.

Apart from the revenue shortfall, Mr. Idris said the country also recorded a revenue loss of about $143.7 million during the month as a result of the reduction in the volume of oil export sales as well as the drop in the average crude oil price at the international market from $49.58 per barrel in November 2015 to $43.40 in December.

The reduction in oil export sales, the AGF explained, was attributed to the negative impact of the various incidents of crude oil production shut-ins and shut-downs of oil production facilities for repairs and production shortfall due to technical hitches at different crude oil terminals during the month.

Despite the loss, Mr. Idris said the country was able to make up with about N100.4 billion from non-oil mineral revenue sources, as gross statutory revenue for the month rose to about N315.02 billion, about N17.57 billion higher than the N297.5 billion recorded in the previous month.

Other components of the gross distributable statutory revenue available for distribution among the three tiers of government, included about N6.333 billion refund by the Nigerian National Petroleum Corporation to the federal government as part of the N450billion oil revenue the Corporation withheld from the Federation Account in 2010/2011.

Also, the AGF said the amount included about N4.35 billion proposed by the Committee for distribution as a result of the gain recorded from the difference between official exchange rate (N197 to the dollar) and what was budgeted for the year (N190 to the dollar).

Permanent Secretary, Federal Ministry of Finance, Mahmud Dutse, explained further that details of the total distributable revenue for the month came to about N387.8 billion when about N62.07 billion realised from the value added tax, VAT was added.

Mr. Dutse said another $150 million, which was not added to the month’s allocation was shared earlier among the three tiers of government from the Nigeria LNG dividend payment.

Details of the allocations showed that the federal government got about N147.6 billion or 52.68 per cent; states N74.9 billion, or 28.72 per cent; local governments N57.7 billion, or 20.60 per cent, while the nine oil mineral states took N27.7 billion, or 13 per cent of the total allocation.

Similarly, VAT distribution showed that federal government took N8.94 billion, or 15 per cent; states N29.8 billion, or 50 per cent, and N209 billion for local government councils.

The balance in excess crude oil revenue account stood at about $2.45 billion.


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