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Published On: Thu, Dec 25th, 2014

FG laments drastic fall of oil prices

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By Etuka Sunday.

With the recent report of the drastic fall on oil prices , falling from $96.81 in September to $87.78 in October , and as at recently fallen to $55 per barrel per day, the Federal Government has lamented the continuous fall in oil prices which has begin to have impact on the nations monthly allocation sharing.

As against October the revenue generated has dropped by N36bn, leaving the total fund generated in November at N500bn as against N530bn in October.

The Minister of State for Finance, Amb. Bashir Yuguda stated this at the Federation Account Allocation Committee, FAAC, meeting in Abuja.

The Meeting which witnesses the presence of CME and Minister of Finance, Dr. Ngozi Okonjo- Iweala was filled with so much disagreement as source among the finance commissioners told our correspondence that she had to run out because of questions she couldn’t answer.

Okonjo- Iwela in an interview section with Journalist said her coming was to exchange views with the commissioners of Finance on what should be done at Federal and state level to help manage the current crises.

“Once we make adjustment at Federal level we needed to interact with the states to as to adjust to the present situation,

“She however called on the States to look within so as to derive revenue from within.

She also assured that emphasis would be placed on VAT which is more beneficial to State and Local governement level.

Amb. Yuguda ellaborating on the revenue disbursed said, ” N383bn mineral revenue was generated, non mineral revenue generated was N115bn. Total revenue generated for the month of November is N498bn, VAT collected is N60bn and cost of collection is N2.4bn with NNPC refunds of N55bn to the Federation account”.

Analysing on the distribution Yuguda said “the net allocation was shared among the three tiers of Government, the Federal government got N196bn, State got N99bn and the Local government got N76bn, N35.5bn was allocated to Sure-p.

“According to him a total of N500bn was generated for the month of November and a drastic drop of 33% in export volume between Sept and Oct, 2014 and further drop in crude oil from $96 in Sept. to $87 in Oct. impacted negatively on the revenue for the month.


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