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, 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.
Giving insight into 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 the2014 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.”
Tuesday, 16 June 2015
CBN GIVES INSIGHT AND REVIIEW TO WHY STATE CANT PAY WORKERS
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 govt
“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
