Fenon-oilderal government’s inability to beef up revenue accruing to the federation has continued to pose serious threat to the management of the economies of the three tiers government in the country.
Following this ugly trend, which has been the hallmark of the nation’s revenue base for months, Permanent Secretary, Federal ministry of finance, Mrs. Anastasia Nwaobia told reports yesterday in Abuja that the federal government is worried about the dwindling revenue of the country and is working tirelessly to reverse it for good.
Mrs. Nwaobia who spoke after the monthly Federation Account Allocation Committee, FAAC, meeting said the federal government is exploring to earn more revenue from the solid mineral sector, and diversify from the oil and gas sector.
According to her, government, through the Federal Island Revenue Service, FIRS, is also perfecting strategies to bring in more people into its tax net, in addition to ensuring immediate remittance of the Value Added Tax, VAT, to government coffers.
Meanwhile, the federal, state and local governments recorded another sharp drop in revenues accruing to them as the FAAC, after its meeting declared total revenue of N389.936 billion distributable to the three tiers of government for the month of September, 2015.
The amount shared is N230.732 billion less than the N442.606 billion distributed to the three tiers of government in August.
A break down of the revenue for the period under review shows that the gross statutory revenue of N321.996 billion received for the month was lower than the N369.140 billion received in the previous month by N47.144 billion.
Explaining the rationale for this, Mrs. Nwaobia said “Revenue from crude oil and gas export was negatively impacted in August, 2015 due to shut down and shut-in of production for maintenance at different periods and Terminals during the month.
“Also, there was loss of $32.07 million as a result of drop in average price of crude oil from $56.76 in July to $47.32 in August 2015. The current revenue challenge was further worsened with a decline of over N44 billion in Non-oil revenue collections.”
The sum of N6.330 billion was refunded by NNPC to FGN. Also, there is exchange gain of N5.211 billion, which the FAAC proposed for distribution.
Mrs. Nwaobia who put the balance in Excess Crude Account, ECA, at $2.25 billion, reassured that the federal government was doing everything possible to turn round the fortunes of the economy in order raise the country’s revenue base.
She informed that the second quarter capital allocation has been released, but did not state the amount.