Home News Monthly Oil Revenue Falls to N282.06bn in April

Monthly Oil Revenue Falls to N282.06bn in April

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The country’s monthly revenue prospects continued to drop as gross receipts stood at N282.06 billion in April compared to N315.04 billion the previous month.

This represented a drop of N32.98 billion from last month’s receipts.

Also on Friday, Nigeria’s interbank lending rates rose to 14.25 per cent on average from 9.25 per cent last week, after the Nigerian National Petroleum Corporation (NNPC) recalled some of its deposits from banks.

A total distributable sum of N388.33 billion was shared among the three tiers of government for April compared to N435.05 billion shared in March.

It was the lowest amount to be spared by all the three tiers of government in the last 10 months

Briefing journalists at the end of the monthly meeting of the Federation Accounts Allocation Committee (FAAC) in Abuja, Minister of State for Finance, Alhaji Bashir Yuguda, said mineral revenue dropped to N180.47 billion in the period under review compared to N228.58 billion the previous month.

Non mineral revenue increased to N101.59 billion from N86.46 billion in March.

The Value Added Tax (VAT) receipts also increased to N75.16 billion from N71.19 billion.

The minister blamed the shortfall in statutory revenue to the frequent shut down and shut in of trunks and pipelines at terminals, impacting negatively on crude oil revenue.

But he added that an increase in average price of crude oil from $55.34m in February 2015 to $56.03m in March brought about $21.67m gain in revenue.

A rundown of statutory distribution showed the Federal Government N132.11 billion; states shared N67.01 billion while the local governments received N51.66 billion.

The sum of N23.10 billion was shared among the oil and gas producing states based on the derivation principle.

For VAT, the Federal government got N10.82 billion; states got N36.07 billion while the local governments shared N25.25 billion.

Meanwhile, Yuguda, who presided over the affairs of the committee for the last time before the expiration of the current administration, urged state governments to make salary payment a priority amidst the current fiscal crisis.

He said: “We learnt from each other, we shared ideas but however in the last four months, the revenue stream has been falling due to crash in oil price. However, 2014 was a good idea for the non-oil sector especially the Federal Inland Revenue Service (FIRS) that has been able to scale over its target amount by N1.01 trillion.

“By and large, we have been able to work together. We need to look at the reality on ground and we did advise the states to prioritise their needs by ensuring that workers’ welfare in terms of salary payment is accorded a priority. The federal government has lived up to expectation, and we have advised states to put workers’ salary as priority.”

He urged incoming administration to embrace economic diversification, good governance and block all sources of revenue leakages in order to attain optimum service delivery.

It also emerged yesterday that the Nigerian National Petroleum Corporation (NNPC) was yet to refund the sum of $1.48 billion into federation account as recommended by Pricewaterhouse coppers which recently audited the corporation.

State governments are particularly anxious to get the remittance as they believe it would help them address the fiscal crisis at hand.

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