The Federation Account Allocation Committee (FAAC) on Wednesday shared N420.000 billion to the Federal, states and local governments for the month of November. Among the shared money is the sum of N6.330 billion refunded to the federation account by Nigerian National Petroleum Corporation.
The Minister of Finance, Mrs.Kemi Adeosun who announced this shortly after the FAAC indicated that the Gross Revenue N 238.716 billion received for the month was lower than the N 279.746 billion received in the previous month by 41.030 billion.
Shut-in and Shut down of Pipelines for repairs and maintenance continued due to attacks on delivery pipelines also contributed to the low revenue. Also, there we’re decreases in volume of import duty companies income Tax (CIT) while Petroleum Profit Tax (PPT) and Oil Royalty recorded marginal increase.
Crude Oil export volume decreased while the average price of Crude Oil dropped, resulting in revenue loss of about $51million in Federation export Sales.Force Majeure was declared at Qua Iboe Terminal and the NGL lifting programmes with the Force Majeure at Forcados Terminal still in place.
The distributable Statutory Revenue for the month is N 203.952 billion. The sum of #6.330 billion was refunded by the NNPC to FGN. Also, there is exchange gain of #41.402 billion which is proposed for distribution. The total revenue distributable for the current month (including VAT) is #420.000 billion.
Consequently, from Statutory revenue, Federal Government received N96.674 billion (52.68%); States received N49.035 billion (26.72%); Local Government Councils received N37.804 billion (20.60%); while the Oil Producing States received N13.548 billion as 13% derivation revenue.
Furthermore, for the month of November, 2016, the gross revenue available for the Value Added Tax (VAT) was N69.621 billion as against N64.265billion distributed in the proceeding month, resulting inan increase N 5.356 billion.
The breakdown of the Value Added Tax (VAT) distribution for the month is as follows N66.836 billion out of which the Federal Government got 10.025 billion (15%), States got # 33.393 billion (50%) and the Local Government Councils received #23.393 billion (35%).
In a related vein, Adeosun while speakng on the current situation in the Niger Delta, stated that the current activities of the Niger Delta continues to affect the economy but Federal government is working very hard to resolve it.
According to her, “We are confident that we will gather production volumes back up as quickly as possible of course the Latest NBS figures are reflecting the ongoing challenges in the economy. If you look at the figures closely, the large driver of the lack of growth is the oil secto”r.
“You could see also in the revenues the fact that we had in August 950,000 barrels a day shut in. That is the largest source of our revenue and when it is challenged it is clearly been reflected in the numbers”.
She assured that now the situation is been addressed production volumes will come back. “We are confident that the progress will be continue, They have taken quite a hit and we will continue to try and support them through it. But I think the big challenge for manufacturers is Forex and high interest rates and I know the monetary policy is doing everything they can”.
“We have a Fiscal roadmap that we will be rolling out and it includes a number of measures around revenue mobilisation, tax relief and fiscal instruments that will be issued around 2017 to really support getting the economy back into recovery”,she noted.