Oil theft: Revenue drops by N30.2b in May as FG, States, LGs share N620.6b

A breakdown of the May 2013 federal allocation shows that the Federal Government got N235, 778 billion (52.68%); the State Governments got N119, 590 billion (26.72%) and the Local Government Councils got N92.199 billion (20.60%)

The revenue accrued to the Federation account dropped by N30. 293 billion in May as a result of crude oil theft and Force Majeure declared at Bonny Terminal, the Ministry of Finance announced on Thursday.
Consequently, the Ministry could only shared a total of N620, 656 billion as federal allocation to the three tiers of government for the month of May 2013.
In addition, the sum of N156 billion was shared as February arrears owed the states by the Federal Government. The three tiers of government had shared N629, 069 billion as federal allocation in April 2013.
A breakdown of the May 2013 federal allocation shows that the Federal Government got N235, 778 billion (52.68%); the State Governments got N119, 590 billion (26.72%) and the Local Government Councils got N92.199 billion (20.60%). The oil producing States got N48, 874 billion as 13% derivation revenue.
According to a communiqué issued by the Federation Account Allocation Committee, the distributable Statutory Revenue for the month was N502, 617 billion. There was however no augmentation for the month.
The sum of N7.617 billion refunded by NNPC and the N35.549 billion from the SURE-P, added up to the total distributable revenue for the month.
The communiqué confirmed that gross revenue of N590.777 billion was received for the month. This was lower than the N621.070 billion received in the previous month by N30, 293 billion.
The shortfall was due to a drop in crude oil production and lifting operations occasioned by Force Majeure declared at Bonny Terminal. Added to this was the problem of crude oil theft and vandalism.
For the month of May, the gross revenue available from the value added Tax (VAT) was N74.873 billion as against N54.571 billion distributed in the preceding month, resulting in an increase of N20.302 billion.
The communiqué stated further that non-oil revenue increased during the period partly due to the increased payments by companies filing their returns in order to comply with the due date.

Comments