Abuja - The revenue allocation to federal, states and local governments for September dropped by about N90.27 billion, as they shared a total of N420 billion for the month, Premium Times reports.
About N510.2 billion was shared at the Federation Account Allocation Committee (FAAC) meeting in August.
The permanent secretary, Federal Ministry of Finance, Mahmoud Isa-Dutse, said the total revenue available for distribution for the month was N420 billion.
This consists of earnings from statutory sources, N250.95 billion; value added tax (VAT) N64.27 billion; exchange gain, N41.4 billion; excess petroleum profit tax, N63.39 billion and Nigerian National Petroleum Corporation NNPC) refund to the Federal Government N6.33 billion.
“The gross statutory revenue of N279.75 billion received for the month was lower than the N319.05 billion received in the previous month by N35.29billion,” Dutse said.
He blamed the situation on attacks on oil facilities by vandals in the Niger Delta and the negative impact of declining global oil prices of crude oil in the international market.
“We need to do everything possible to normalize things in the Niger Delta region,” Dutse said.
He said the decline was also attributed to the Force Majeure declared at both the Bonny and Forcados crude oil exporting terminals as well as the shut-in of crude oil production and shut-down of pipelines for routine repairs and maintenance in the region.
Force Majeure is declared by a company when it is unable to meet agreed obligations, due to unforeseen circumstances beyond its control.
- News 24