The
monthly Federation Account Allocation Committee (FAAC) meeting held on
Tuesday in Abuja where the Nigeria economy came under focus again.
Rising from the meeting the,
Hon Minister for Finance, Kemi Adeogun told news men that Nigeria economy contracted to breaking point leading to a sharp drop in revenue for the month of January.
Hon Minister for Finance, Kemi Adeogun told news men that Nigeria economy contracted to breaking point leading to a sharp drop in revenue for the month of January.
According to her, the gross statutory revenue available for sharing for the month of January among the three tiers of government (federal, state and local government) was N290.961bn without Value Added Tax (VAT), lower than what was received in the previous month which stood at N315.019bn, a shortfall of N24.058bn.
According
to her, when VAT of N69.719bn is added, the total sum arrives at
N370.388bn. She explained that the sum distributed for the month
comprised three distribution sources namely, statutory revenue
N290.961bn, VAT N69.719bn, exchange gain N3.378bn and refund by the
Nigeria National Petroleum Corporation (NNPC) to the Federation Account
totaling N6.330bn
“Short-in and shut-down of production for repairs and maintenance continued during the period under review,” she said referring to problems in the country’s main revenue source, oil.
According to her, there was a slight increase in production of crude in December, 2015 but the resulting income was not significant but marginal due to a 10% drop in crude prices.
“The drop in the average price of crude oil from $43.40 in November to $39.04 in December of the same year,” she said “resulted in a revenue loss of $22.5m.
Probed by journalists why the NNPC keeps refunding money to the federation account, Adeogun could not provide explanation but promised to revert back when the details were available.
“Short-in and shut-down of production for repairs and maintenance continued during the period under review,” she said referring to problems in the country’s main revenue source, oil.
According to her, there was a slight increase in production of crude in December, 2015 but the resulting income was not significant but marginal due to a 10% drop in crude prices.
“The drop in the average price of crude oil from $43.40 in November to $39.04 in December of the same year,” she said “resulted in a revenue loss of $22.5m.
Probed by journalists why the NNPC keeps refunding money to the federation account, Adeogun could not provide explanation but promised to revert back when the details were available.
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