FAAC distributes N305.128b as May revenue target falls by N203.978b
The resumed militancy in the Niger Delta region of the country has taken a great toll on the country’s revenue generation currently driven largely by oil mineral resources and may indeed negatively affect the 2016 budget implementation across the states as well as the Federal Government if figures of revenue receipts for the Month of May 2016 is anything to go by.
At the Federation Accounts Allocation Committee (FAAC) meeting yesterday to distribute the May federation revenue where the sum of N509.106 billion was projected as revenue, only the sum of N305.128 billion was realized and distributed, thus leaving a shortfall of N203.978 billion attributed to the drop in oil minerals production of about 2.3 million barrels.
The amount realized however, was better than the preceding month’s volume by N23.628 billion, according to the Minister of Finance and Chairman of FAAC, Mrs. Kemi Adeosun.
She gave a breakdown of how the revenue was raised: “The gross revenue of N237.466 billion received for the month was higher than the N213.817 billion received in the previous month y N23.649 billion. Crude oil production and export dropped by about 2.3 million barrels in February due to force majeure declared at the Farcados Terminal; shutdown of pipelines at other terminals for repairs and maintenance . As a result, Federation export revenue declined by $57.88 million even though the average price of crude oil increased from $29.02 in January to $3226 in February, 2016. Company Income Tax ( CIT) recorded a marginal increase even as the time for companies to file their returns is yet fall due . The distributable statutory revenue for the month is N237.466 billion . The sum of N6.330 billion was refunded by the NNPC to FGN. Also, there is exchange gain of N2.546 billion which is proposed for distribution. The total revenue distributable for the current month (including VAT) is N305.128 billion,” Mrs. Adeosun further declared.