recent spate of attacks on oil production facilities in the Niger Delta region, which resulted in the disruption in crude oil exports, the federal and the 36 states governments, along with the 774 local government counterparts, shared increased allocations from the Federation Account for May 2016.
At the end of the Federation Accounts Allocation Committee (FAAC) meeting on Wednesday, the three tiers of government distributed a total of N305.128 billion as net allocation for the month.
The Minister of Finance, Kemi Adeosun, said at the end of the meeting that the allocation was higher by N23.63 billion than about N281.5 billion shared by the three tiers of government for the month of April.
Mrs. Adeosun said distributable statutory revenue, consisting oil mineral, taxes, customs and excise revenues for the month of about N237.47 billion was higher than about N213.82 billion earned in April.
“Crude oil production and exports dropped by about 2.3 million barrels in February, 2016 due to the Force Majeure declared by the multi-national oil companies at Forcados crude exporting terminal, shut-ins and shut-down of pipelines at other terminal for repairs and maintenance,” the minister said.
Force Majeure is a notice by a party in a contract that dues to unforeseen circumstances or developments it may not be able to meet scheduled obligations to his customers.
The minister explained that as a result of the disruption, the federation export revenue declined by about $57.88 million (about N11.52 billion), although average crude oil price increased from $29.02 per barrel in January to $32.26 in February.
She said companies’ income tax recorded a marginal increase, even as the time for companies to file their annual returns was yet to fall due.
Besides, the Nigerian National Petroleum Corporation refunded N6.33 billion to the FAAC, as another tranche of the N450 billion debt to the three tiers of government as unremitted revenues.
There was an exchange gain of about N2.55 billion proposed for distribution, while value added tax generated during the month totaled N65.12 billion.
Federal Inland Revenue Service received N2.98 billion, being four per cent cost of collection, while Nigerian Customs Service got N2.35 billion, being 7 per cent cost of collection, and Department of Petroleum Resources went home with N1.22 billion, representing 4 per cent cost of collection.
Details of the allocations showed that the federal government took a share of N122.83 billion, while states got N57.23 billion and local governments collected N44.12 billion. About N16.74 billion was distributed among oil producing states as 13 per cent derivation from oil and gas.
The balance in the excess crude oil revenue account remained at $2.261 billion with no additional fund deposited and nothing withdrawn.