The
dwindling resources of states and local governments suffered a 30.6 per cent
fall from federation account allocation in April 2015 when compared with what
the states got in the same period last year.
Central
Bank of Nigeria, CBN, and Economic Report for the month of April said that the
total statutory allocation to the state governments stood at N153.45 billion in
April 2015. This was 30.6 and 22.9 per cent below the 2014 monthly budget
estimate and the level in the preceding month, respectively. The dwindling
revenue of federal, state and local government is as a result of falling oil
prices.
The
poor financial status of states which depends on monthly federal allocation,
the CBN report for April said: “The breakdown showed that at N119.27 billion or
77.7 per cent of the total, state governments’ receipt from the Federation
Account was below both the 2014 monthly budget estimate and the level in the
preceding month by 29.7 and 30.3 per cent, respectively.
“At
N34.17 billion or 22.3 per cent of the total, receipts from the VAT Pool
Account was below the monthly budget estimate by 33.4 per cent, but exceeded
the level in the preceding month by 22.2 per cent. Total receipts by the local
governments from the Federation Account and VAT Pool Account stood at N88.91
billion at end-April 2015.
“This
was lower than both the budget estimate and the level in the preceding month by
33.8 and 19.7 per cent, respectively. Of this amount, receipts from the
Federation Account were N64.99 billion (73.1 per cent of the total), while the
VAT Pool Account accounted for N23.92 billion (26.9 per cent of the total).
“At
N735.07 billion, estimated federally-collected revenue in April 2015, was lower
than the monthly budget estimate by 9.8 per cent. It was, however, higher than
the receipt in the preceding month by 35.8 per cent. The decline in estimated
federally-collected revenue (gross) relative to the monthly budget estimate was
attributable, largely, to the shortfall in receipts from oil revenue during the
review month
Fall in receipts from crude oil and gas exports
“At
N286.24 billion or 38.9 per cent of total revenue, gross oil receipt was lower
than the monthly budget estimate and the level in the preceding month by 36.8
and 21.5 per cent, respectively. The decline in oil receipts relative to the
monthly budget estimate was attributable to the fall in receipts from crude oil
and gas exports, occasioned by the drop in the price of crude oil in the
international oil market.”
The
report further stated that “gross non-oil receipts at N448.83 billion or 61.1
per cent of the total revenue was above the monthly budget estimate and the
level in the preceding month by 23.9 and 154.1 per cent, respectively. The
increase in non-oil revenue relative to the monthly budget estimate reflected
largely, the increased receipts from the FGN Independent Revenue.
Distribution among three tiers of government
“It
also said that of the gross federally-collected revenue, N307.45 billion
(excluding deductions and transfers) was transferred to the Federation Account
for distribution among the three tiers of government and the13.0 per cent
derivation fund.
“The
Federal Government received N146.49 billion, while the state and local
governments received N74.30 billion and N57.28 billion, respectively. The
balance of N29.38 billion was distributed to the oil-producing states as 13.0%
Derivation Fund. From the VAT Pool Account, the Federal Government received
N10.25 billion, while the state and local governments received N34.17 billion
and N23.92 billion, respectively.
In
addition, N33.53 billion and N9.49 billion were distributed as Exchange Gain
and NNPC Additional Revenue among the three tiers of government and the 13.0
per cent Derivation Fund as follows:
“The
Federal Government received (N15.37 billion and N4.35 billion), while the state
and local governments received (N7.79 billion and N2.21 billion) and (N6.01
billion and N1.70 billion), respectively. The balance (N4.36 billion and N1.23
billion) was distributed to the oil-producing states as 13 per cent Derivation
Fund.
“Furthermore,
N6.33 billion was received by the Federal Government from the NNPC in respect
of the eighth equal installment refund of indebtedness. Overall, the total
allocation to the three tiers of government from the Federation Account and VAT
Pool Account in the review month amounted to N425.14 billion, compared with
N557.80 billion in the preceding month.
“At
N452.38 billion, the estimated Federal Government retained revenue for April
2015 was above the monthly budget estimate and the receipts in the preceding
month by 46.0 and 77.1 per cent, respectively. Of the total amount, the
Federation Account accounted for 32.3per cent, while FGN Independent Revenue,
others, VAT Pool Accounts, NNPC Refund and NNPC Additional Revenue accounted
for 59.6, 3.4, 2.3, 1.4 and 1.0 per cent, respectively.
Total expenditure
“At
N155.52 billion, total estimated expenditure for April 2015 was lower than both
the monthly budget estimate and the level in the preceding month by 60.2 and
26.3 per cent, respectively. A breakdown of total expenditure showed that the
recurrent expenditure accounted for 88.8 per cent, while the capital
expenditure and transfer components accounted for the balance of 2.8 and 8.4per
cent, respectively. Non-debt obligations accounted for 43.7per cent of the
total recurrent expenditure, while debt service payments accounted for the
balance of 56.3 per cent. Thus, the fiscal operations of the Federal Government
resulted in an estimated surplus of N296.86 billion.”
According
to the CBN “Nigeria’s crude oil production, including condensates and natural
gas liquids, was estimated at an average of 1.91million barrels per day (mbd)
or 57.30 million barrels for the month. This represented an increase of 5.0 per
cent above the level of 1.82 mbd or 56.42 mb recorded in the preceding month.
Crude oil export was estimated at 1.46mbd or 43.80 million barrels. This
represented an increase of 6.6 per cent above the level recorded in the
preceding month.
“Deliveries
to the refineries for domestic consumption remained at 0.45 mbd or 13.50
million barrels during the review month. At an estimated average of $59.55per
barrel, the price of Nigeria’s reference crude, the Bonny Light (37º API), rose
further by 3.7per cent above the level in the preceding month.
“The
average prices of other competing crudes, namely the U.K Brent at US$58.18 per
barrel; the West Texas Intermediate at $52.82 per barrel; and the Forcados at
US$59.88per barrel, also showed similar trends as the Bonny Light. The average
price of OPEC’s basket of eleven crude streams, at $55.61per barrel, indicated
an increase of 5.7 per cent, but indicated a decline of 46.7 per cent, compared
with the average of $52.61and $104.27per barrel recorded in the preceding month
and the corresponding period of 2014, respectively
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