Nigeria records N28.67bn drop in revenue

17 September 2014, Abuja – The Federal Government on Tuesday said the country recorded N28.67bn decline in gross federally collected revenue from N630.32bn received in the month of July to N601.65bn in August.

The Minister of State for Finance, Ambassador Bashir Yuguda, said this while briefing journalists shortly after this month’s Federation Accounts Allocation Committee meeting, which was held at the headquarters of the Ministry of Finance, Abuja.

Dr. Ngozi Okonjo-Iweala

Dr. Ngozi Okonjo-Iweala, Finance Minister

Yuguda attributed the decline in revenue to the force majeure declared by Shell and a series of shutdowns of trunk lines and pipelines at various terminals.

He said, “The gross revenue of N601.648bn received for the month was lower than the N630.325bn in the previous month by N28.67bn. There was decline in revenue in the month of August, which was attributed to the force majeure declared by Shell and a series of shutdowns of trunk lines and pipelines at various terminals

“However, payments and returns by some blue-chip companies and increase in the receipt of foreign Company Income Tax boosted non-oil revenue for the month.”

The minister said despite the revenue drop, the committee allocated the sum of N611.76bn to the three tiers of government as statutory allocation for the month of August

The August allocation, according to Yuguda, who is also the Chairman of FAAC, was N42.82bn lower than the N654.58bn shared in July

He said N504.7bn was shared under statutory distribution; N61.51bn under Value Added Tax; while N35.54bn was allocated under the Subsidy Reinvestment and Empowerment Programme.

In addition, the minister said the sum of N10bn, being refunded by the Nigerian National Petroleum Corporation to the Federation Account, was also shared by the committee.

Giving a breakdown of the distribution, Yuguda said after deducting the cost of collection to the Federal Inland Revenue Service and the Nigeria Customs Service, the Federal Government received the sum of N238.08bn from statutory revenue, representing 52.68 per cent.

The 36 states, according to him, shared N120.76bn or 26.72 per cent, while N93.1bn was allocated to the 774 Local Government Councils.

Similarly, the sum of N44.85bn was allocated to the oil producing states based on the 13 per cent derivation principle.

In addition, he said the committee agreed to share the sum of N59.05bn VAT revenue thus: Federal Government, N8.85bn; states, N29.52bn; and local governments, N20.66bn.

Yuguda said that the committee transferred the sum N25bn to the Excess Crude Account, thus bringing the balance in the account to $4.1bn.

Meanwhile, the Federal Government on Tuesday also received $1m (N165m) grant from the African Development Bank to contain the spread of the Ebola Virus Disease in the country.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, signed the agreement on behalf of the government, while the Country Director of the AfDB, Mr. Ousmane Dore, signed on behalf of the bank.

Okonjo-Iweala, while speaking at the event held at the headquarters of the Ministry of Finance, described the bank’s gesture as a major contribution to Nigeria’s effort at addressing the disease.

“The Federal Government has made a lot of progress in containing the Ebola disease and it is in recognition of this that the AfDB has offered a grant of $1m to the Nigerian government to assist in the fight against Ebola,” she said.

The minister commended the bank for the gesture, adding that the amount would be put into effective use in line with the work plan of the Ministry of Health.


– The Punch

About the Author