Adeosun reveals FG revenue dropped by N17bn in January

February 24

12:32 2016

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Kemi Adeosun, minister of finance, has revealed that government revenue dropped by N17 billion for the month of January.

According to Adeosun, N370.4 billion was shared among the federal, states and local governments as revenue for January 2016.

She said this while addressing journalists on the outcome of the Federation Accounts Allocation Committee (FAAC) meeting in Abuja on Tuesday.

She said that the shared amount included the month’s statutory revenue of N290.9 billion, an exchange gain of N3.4 billion.

Adeosun said N6.3 billion that was refunded to the federation account by the Nigerian National Petroleum Corporation (NNPC) was part of the money shared.

“Therefore, the total revenue distributable for the month of January, including VAT of N69.7 billion is N370.4 billion,” she said.

NAN recalls that N387.8 billion was shared to the three tiers of government as revenue in December 2015, showing an allocation decrease of N17.4 billion in January.

Adeosun explained that acts of vandalism on oil pipelines, among other factors, had continued to negatively impact on oil revenue generation.

“The shut-in and shut-down of production for repairs and maintenance continued during the period under review,” she said.

“However, there was a slight increase in production of crude in December 2015 but the resulting income was marginal due to a 10 per cent drop in crude oil prices.

“The drop in the average price of crude oil from $43.40 in November to 39.04 in December 2015 resulted in a revenue loss of $22.55 million.”

Giving the breakdown of revenue among the three tiers of government, Adeosun said the federal government received N137.5 billion, representing 52.68 per cent, while states got N69.7 billion, representing 26.72 per cent.

The minister said the local governments received N53.7 billion, amounting to 20.60 per cent of the amount distributed.

She also said that N22.4 billion, representing 13 per cent derivation revenue was shared among oil producing states, adding that the country generated N173.7 billion as mineral revenue and N117.3 billion as non-mineral revenue in January,

This also showed that there was a decrease of N40.9 billion and an increase of N16.9 billion respectively from what the country generated in the preceding month.

The balance in the Excess Crude Account was $2.25 billion.