A Review of the Nigerian Energy Industry

FG, States’ shared income drops to N500.13bn on low oil revenues

Dr. Bashir Yuguda
Dr. Bashir Yuguda

*As NNPC remits N5.1bn owed to Federation Account
*Begins talks to pay back $1.4bn of missing oil fund

Oscarline Onwuemenyi

26 February 2015, Sweetcrude, Abuja –
The Federal government, states and local governments has shared N500.13 billion as revenue from the federation account for the month of January 2015.

This is lower than the N580.38billion shared the previous month, as lower revenues from crude oil as well as lower than expected non-oil revenues impacted negatively on the total revenue performance for the month.

Minister of State for Finance and Chairman of the Federation Account Allocation Committee (FAAC), Dr. Bashir Yuguda, in his briefing after the meeting yesterday in Abuja, noted that a gross revenue of N416.09 billion was received for the month of January, indicating a decrease of N73.93billion from the N480.03billion received the previous month.

The minister also explained that the Nigerian National Petroleum Corporation, NNPC, has paid N776 million it owed the Federation account and has remitted an additional amount of N4.419 billion, totalling N5.195 billion.

Speaking on the recommendations of the forensic audit report by PriceWaterhouseCoopers on the alleged mismanagement of oil funds, Yuguda said the NNPC is to remit $1.48billion to the Federation account.

He said he has engaged in talks with the Minister of Petroleum Resources and the Group Managing Director of NNPC. “We are talking on the modalities and the time frame by which the NNPC will repay this money,” he said.

On the declining revenue, Yuguda noted that there was substantial loss of revenue due to a further drop in crude oil prices from $77.53 per barrel in November to $52.34 per barrel in December 2014.

The Minister of State also said a 33 per cent decrease in export volume between November and December 2014 translated to a loss of $159.88 million.

“The shutdown of pipelines at various terminals continued to impact negatively on the revenue performance. Also, non-oil revenues performed below the 2014 budgetary provisions,” Yuguda said.

He stated that the distributable statutory revenue for the month was N416.096 billion while the sum of N6.33 billion was refunded by NNPC to the federal government.

He added that the total revenue performance for the current month including VAT is N500.130billion.

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