Date: 2016-10-21

In spite of the recent appreciation of crude oil price in the global market, quantity shock has impacted negatively on allocation to the three tiers of government for the month of September as the spate of attacks on oil installations and pipeline vandalism showed no sign of abating.

From N510.270 billion shared by the three tiers of government for August allocations, the sum of N420 billion was approved for sharing at the Federation Account Allocation Committee (FAAC) meeting in Abuja yesterday, indicating a decline of N90.2 billion.

The Permanent Secretary, Federal Ministry of Finance, Dr. Mahmoud Isa-Dutse, who addressed journalists at the end of the meeting, stated that there was a decrease of oil for export in the month of June by 1.15 million barrels due to attacks on oil assets.

The decrease in revenue cuts for September allocations also affected both statutory revenue, Value Added Tax (VAT) and customs duty collections While net statutory allocation was N315.045 billion in August, it declined to N250.947 billion in September.

VAT, which was N75.962 billion in previous month, also came down to N64.265 billion in September. Of the net statutory allocation, the federal government got the highest sum of N120.351 billion, states N61.044 billion while local governments received N47.062 billion.

The sum of N13.729 billion went to oil producing states as their share of 13 per cent derivation. Balance in Excess Crude Account stood at $2.454billion.

In another development, the Permanent Secretary and the Accountant- Generation of Federation, Alhaji Idris Ahmed have endorsed the recent position of the International Monetary Fund (IMF) that Nigeria’s economy is the largest in Africa.

"That Nigeria is back again as the biggest economy on the continent is a welcome development. When it started sometime ago and South Africa took over the lead as the biggest economy, I'm not surprised at all that Nigeria has taken over her leading position given what the federal government is doing to get the economy from recession.

"We have the potential of growth to move higher. It will put us in rightful position as a major destination for investors," the permanent secretary said.

The Edo State Commissioner for Finance and Chairman of Commissioners of Finance Forum Mr. John Inegbedion, said the cost of collection deducted by both FIRS and Nigeria Customs Service and Department of Petroleum Service was unconstitutional. But he however noted that it was unanimously agreed by all stakeholders that the cost of collection be effective.