December revenues ramped on efficiency, Nigerian authorities say

For the first time in several months, Nigerian government gross statutory revenues ramped up to N315.019 billion in December 2015, about N17.569 billion higher than the N297.450 billion collected the previous month.

Accountant General of the Federation, Idris Ahmed, told BusinessDay after the monthly Federation Accounts Allocation Committee (FAAC) meeting in Abuja that revenues rose on account of what he called ‘efficiency, reduction in costs and better management of resources.’

Value Added Tax (VAT) collections also went up in December by about N890 million to N62.071 billion from N61.181 billion in November.

But VAT collections were significantly lower than the N102.696 billion monthly budget.

With falling oil prices, government revenues had cut by half in over one year now, a situation heightened by poor management of even available resources, an ill, which the Buhari’s administration has committed to combat.

But apart from low oil prices, oil revenues are also hugely affected by supply shock in the country where oil theft and vandalism occurs mostly on daily basis.

Mahmoud Isa-Dutse, permanent secretary at the ministry of finance, who briefed on the FAAC meeting confirmed that shut-in, shut down of production for repairs, production shortfall due to technical hitches at different terminals throughout the month, impacted negatively on crude oil and gas revenue.

Representing minister of finance, Kemi Adeosun at the meeting, which was holding for the time in the year, Isa-Dutse also disclosed that about $143.96 million revenue was lost on account of reduction in federation export slashes and a drop in the average price of crude oil from $449.58 in October to $43.40 in November, 2015.

But increase in revenues generated for the month saw the amount shared among the three tiers of government go up by N17.889 billion to N387.771 billion in December, from N369.882 billion in November.

The distributable amount was however N232.897 billion less of N620.668 billion budgeted for the period.

Isa-Dutse also confirmed that NNPC refunded N6.330 billion to the federal government, adding that there was an exchange gain of N4.351 billion which was also proposed for distribution at the meeting.

While the federal government received N156.505 billion for the month, states received N126.196 billion while the Local governments received N78.561 billion.

With no new transfers, the Excess Crude Account (ECA) remains at $2.58 billion, authorities said.