Finance Minister Discloses FG, States, LGs Share N369bn For November 2015

Nigeria’s Minister of Finance, Mrs Kemi Adeosun, on Tuesday, December 22, disclosed that N369.9billion was shared among the Federal, States and Local Governments for November 2015. She stated this when she addressed journalists on the outcome of the Federation Accounts Allocation Committee (FAAC) meeting in Abuja.

She added that the amount comprised the month’s statutory revenue of N297.4billion.

She said, “Also, there is the exchange gain of N4.9billion which is proposed for distribution.

“Therefore, the total revenue distributable for November, including VAT of N61.1billion, is N389.8billion”.

Adeosun added that N6.3 billion was refunded to the federation by the Nigerian National Petroleum Corporation (NNPC) and was also proposed for sharing.

N473.8billion was shared among the three tiers of government for the preceding month. This showed a decrease of N83.9billion.

Giving the breakdown, Adeosun said the Federal Government received N139.5billion, representing 52.68%; states, N70.7billion, representing 26.72%.

She said that the local governments received N54.5billion, amounting to 20.60% of the amount distributed.

The minister further said that N25.6billion representing 13 per cent derivation revenue was shared among the oil producing states.

Adeosun said the country generated N198.5billion as mineral revenue and N98.8billion as non-mineral revenue.

According to her, the development showed a decrease of N11.3billion and N114.2billion from what the country generated as mineral and non-mineral revenue in the preceding month.

She stated that the balance in the Excess Crude Account stood at $2.25billion, which showed that nothing had been removed or added to it since July. Adeosun decried the low revenue generation for the month.

She said, “Ongoing maintenance and the shut-down and shut-in of production for repairs and maintenance at different terminals during the month continued to impact on crude oil and gas revenue negatively.

“Also, there was revenue loss of $19.4million as a result of drop in federation export, even though the average price of crude oil increased from $46.9 per barrel in September to $49.5 per barrel in October’’.

Adeosun, however, stated that there was distribution of $150million being Liquefied Natural Gas (LNG) dividends, adding that it had previously been approved by the National Economic Council (NEC).

She said that the increase in non-oil revenue was a sign that the economy was already showing non-dependence on crude oil alone.

She said, “Even though the revenues for the month are actually down, if you analyse it, non-oil revenue is now really making a difference compared to oil.

“Non oil is beginning to pick up and play its part and I think that for our economy, that is a very positive sign and I think that it is something we should work together with, to ensure that people are paying and remitting tax when due.

“We should improve collections in those non-oil revenue generating agencies, because those revenues are not as volatile or subject to oil price.

“They are most sustainable and those are the signs that we are looking for, that those non-oil revenues should be more stable and significant and to keep growing. So, that is our policy direction’’. [FMF]