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Information by the Federation Accounts Allocations Committee, FAAC, shows that the total amount of money shared between the three tiers of government for the month of September stood at N420 billion; a N90.27 billion decline from the N510.27 billion that was distributed in August.
The amount was also way below the N509.11 billion which was projected for the month of September.
The N420 billion shared among the three tiers of government accrued from the following sources: statutory revenue, N250.95 billion; Value Added Tax, N64.27 billion; exchange gain, N41.4 billion; and excess Petroleum Profit Tax, N63.39 billion.
Permanent Secretary of the Ministry of Finance, Mamudu Dutse, who chaired the FAAC meeting explained that the decline in revenue was due to lower volume of oil exports.
He said, “The gross statutory revenue of N279.75 billion received for the month was lower than the N319.05 billion received in the previous month by N35.29 billion.
“Crude oil export volume decreased by 1.15 million barrels in June. The decrease caused a revenue decline of $46.52 million in federation export sales despite the increase in the average price of crude oil from $46.06 per barrel in May to $48.43 per barrel in June.
“Force majeure was declared at the Bonny Terminal and there was a subsisting force majeure at the Forcados Terminal. Shut-in and shutdown of pipeline for repairs and maintenance also contributed to the drop in revenue.”
Dutse also said that “There were decreases in volume of dutiable imports receipts from Joint Venture Cash Call, Foreign Companies Income and Value Added Tax.
“The distributable statutory revenue for the month is N250.95 billion. There is a proposed distribution of N63.39 billion from the excess PPT Account. Also, exchange gain of N41.4 billion is proposed for distribution. The total revenue distributable for the month is N420 billion.”
He added that the Nigerian National Petroleum Corporation refunded a total of N6.33 billion to the Federal Government.