The drop in crude oil price and a number of production hiccups continued to take their toll on the nation’s economy as gross revenue for the month of July declined by N52.36 billion to N433.58 billion compared to N485.95 billion in June.

Notwithstanding, a total statutorily distributable sum of N539.24 billion was wednesday shared among the three tiers of government for the month in review- lower than the N620.66 billion shared in June.

Addressing journalists last night shortly after the monthly meeting of the Federation Account Allocation Committee (FAAC) in Abuja, Permanent Secretary, Federal Ministry of Finance, Mrs. Anastacia Nwaobia, who presided over the meeting said shut down and shut-in for maintenance and emergency repairs as well as declaration of force majeure by Shell Petroleum Development Company were largely responsible for the shortfall in oil revenue.

She added: “Also, there was revenue loss of $22.53 million as a result of drop in average price of crude oil from $65.76 in May to $61.27 in June.”

Of the amount shared wednesday, statutory allocation accounted for N424.1 billion while Value Added Tax (VAT) was N74.95 billion.
The exchange gain stood at N6.4 billion while the refund by the Nigerian National Petroleum Corporation (NNPC) to the federation account as part of federal government’s share of the corporation’s indebtedness was N6.33 billion.

A breakdown of the statutory distribution showed the the federal government got N202.11 billion representing 52.68 per cent; states received N102.51 billion or 26.72 per cent while the local governments got N79.03 billion or 20.6 per cent
The sum of N28.2 billion was allocated to the oil and gas producing states under the derivation formula.

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http://monitor9ja.com/2015/08/monthly-revenue-drops-by-n52-36bn-as-fg-states-lgs-share-n539-24bn-in-july/

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