22 July 2016
For the first time in the 2016 fiscal period, the federal, states and local governments got monthly allocation from the Federation Account of N559.03 billion.
This is as the gross revenue generated by the federation increased by N301.32 billion, the highest in almost two years.
The Minister of Finance, Mrs Kemi Adeosun, announced this in Abuja on Thursday while addressing newsmen at the end of the Federal Accounts Allocation Committee meeting
She attributed the increase in revenue to efficiency in collection by the revenue generating agencies.
“The big cause of the increase is the improvement of non-oil revenue from the Federal Inland Revenue Service (FIRS) The FIRS improved its performance between last month and this month by N165 billion.
“And that accounted for the change in revenue and also, there was also an improvement of N12.6 billion by the Nigeria Customs Service, as well as the exchange gain of N79.2 billion.
“This is a significant improved performance, especially Customs that was able to do so in spite of the scarcity of foreign exchange and the restrictions on the importation of 41 items.
“So we are quite encouraged by that because it means that some of the reforms that we started around collection improvement are beginning to bear fruit.’’
Giving a breakdown of the amount shared, Adeosun said N412.3 billion was distributed under statutory allocation; N67.4 billion under Value Added Tax (VAT) revenue, while the balance of N79.27 billion was allocated from gains made from exchange rate differential.
She said the Federal Government received N199.75 billion; states, N101.3 billion, local governments N78.11 billion whileN17.12 billion was shared to oil producing states based on the derivation principle of 13 per cent.
For VAT, she said the Federal Government received N9.7 billion, states, N32.35 billion while local governments got N22.67 billion.
“The gross statutory revenue of N538.78 billion received was higher than the N237.46 billion received in the previous month by N301.32 billion.
“The average price of crude oil increased from 32.26 dollars in February to 38.64 dollars in March2016, resulting in 92.99 million dollars increase in federation export revenue.
“There was an outstanding increase in Companies Income Tax and Petroleum Profit Tax with complementary increases in import duty and royalties.”
Adeosun put the balance in the Excess Crude Account at 3.94 billion dollars as at July 20, indicating an increase of 1.68 billion dollars over the 2.26 billion dollars in the previous month.
When asked about plans to stimulate the economy away from the looming recession, the minister said that there was no need for panic as the fundamentals of the economy were still strong.
Meanwhile the Chairman, Commissioners of Finance Forum, Mr John Inegbedion of Edo State, said with the improved revenue for the month, all 36 states would be able to pay salaries for the month.
Also, the Commissioner of Finance, Cross River, Mr Asuquo Ekpenyong, said the state would start processing May and June salaries for payment.