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Nigeria loses N260. 5 billion due to drop in oil revenue, Spotlight on solid minerals

By on September 25, 2012

Gold is the most precious of Solid Minerals

The Chairman, Forum of Commissioners of the 36 states of the federation, Timothy Odaah, informed journalists yesterday in a public interview that both the local, state and federal government has agreed use alternative measures to generate more funds due to the fall in revenue last month.

He however, clarified that the fall in revenue has not come to stay, that it is a temporal and the government is doing everything to get back on track.

 He said: “You have heard contributions being made and what is on ground now is that solid minerals should also be included as the basis for derivation and the essence is to encourage states because almost every state in the nation has some solid minerals or oil buried in their land”.

“If that is done, it would be an incentive because we have seen dwindling economy all over the world.”

Every state should put in more efforts in revenue generation as personal efforts from states are needed to boot revenue generation, he added.

The Chairman maintained that the growth would perk up at the next FAAC meeting and noting the understanding witnessed he said, “we wouldn’t have agreed totally but the circumstances have made us to agree to the terms and by next FAAC, there would be much more improvement.”

The country experienced a massive decline of N260. 512 billion in gross revenue the previous month. The fall in oil proceeds forced FAAC to supplement the allotment for the month of August by N143 billion.

Mr. Jonah Otunla, the Accountant General of the Federation,  had made known that the fall from N825.396 billion to N564.884 billion accrued in July was due to   security problems experienced by the Nigerian National Petroleum Corporation (NNPC) in the production of crude oil.

According to Otunla “the drop in oil production was due to a number of factors among which are the security challenges faced by the NNPC, force majure declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger pipeline as well as decreased in Production Sharing Contract and Modified Carry Arrangement.”