The Permanent Secretary in the Ministry of Finance,Mr. Mahmoud Isa-Dutse has clarified why the revenue allocation to the 3 tiers of government experienced a shortfall in the month of October.
It would be recalled that in October,Federal Government,States and Local Governments which represents the three tiers of Government shared N532.7billion which shows a reduction of N25billion when compared to what they shared in September.
Isa-Dutse said the reduction was as a result of shortfall in export sales of 42.9million dollars this he attributed to a decrease in crude oil production by 1.25million barrels.Although the average price of crude oil increase from 46.29 dollars per barrel to 48.66 dollars per barrel, it was not enough to make up for the loss in production.
“Some of the issues that impacted negatively on crude oil production were attributed to ageing facilities which resulted to shut-ins and shut-downs of pipelines at various terminals for repairs and maintenance.
“Petroleum Profit Tax increased significantly while Import Duty and Value Added Tax improved only significantly.“Companies Income Tax and Oil Royalty recorded slight decreases in the month under review.”
Isa-Dutse while giving the breakdown said after deductions as cost of collection by Federal Inland Revenue Services, Customs and Department of Petroleum Resources,
- The Federal Government received N205.7 billion, representing 52.68 per cent.
- States and N104.3 billion, representing 26.72 per cent.
- The local governments, he said, received N80.4 billion, amounting to 20.60 per cent of the amount distributed.
Isa-Dutse also announced that N40.8 billion representing 13 per cent derivation revenue was also shared among the oil producing states.
He added that the country generated N317.2 billion as mineral revenue and N124.4 billion as non-mineral revenue. This showed an increase of N41.6 billion from what the country generated as mineral revenue and a decrease of N23.5 billion in non-mineral revenue from what was generated in the month of September.He however assured that efforts are on to diversify the revenue source away from oil.
