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Oil theft: N125.78bn revenue shortfall recorded in July

By on August 24, 2013

The Federal Government on Thursday released the gross revenue for the month of July, stating that the country recorded N125.78bn drop in budgeted income.

While the Federal Government had projected to receive a total revenue of N623.76bn broken down into mineral revenue, N465.05bn; and non-mineral revenue, N158.71bn, for the month of July, it actually earned N497.98bn.

The N497.98bn was received as follows: mineral revenue, N361.93bn; and non-mineral revenue, N136.04bn.

The amount earned in July was also N365.04bn lower than the N863.026bn received in the month of June.

The figures were released by the Minister of State for Finance, Dr. Yerima Ngama, shortly after the statutory Federation Accounts Allocation Committee meeting held in Abuja on Thursday night.

Ngama, who is also the Chairman of FAAC, attributed the drop to continuous theft of crude oil and leakages in petroleum products’ pipelines at various terminals.

The country had in recent time witnessed a sharp revenue decline as a result of the activities of pipeline vandals, which had disrupted crude oil production and lifting.

Ngama said, “The gross revenue of N497.98bn received for the month was lower than the N863.02bn received in the previous month by N365.04bn.

“This was due to continuous theft of crude oil, leakages, pipeline breaks at various terminals, HP compressor failures and repair work.

“Also, the downward review of some companies’ estimates and a judgement debt by the Tax Appeal Tribunal on the Education Tax reduced the Petroleum Profit Tax payable for the month.”

However, he said in spite of the drop in revenue, the FAAC approved that the sum of N715.84bn be shared among the three tiers of government.

He said, “The distributable statutory revenue for the month is N483.48bn. The sum of N115bn, being part payment of the arrears of augmentation for the month of June 2013, was proposed for the month.

“The sum of N7.61bn refunded by the Nigerian National Petroleum Corporation is also distributed. In addition, the sum of N35.54bn is proposed for distribution under the Subsidy Reinvestment and Empowerment Programme.

Ngama said, “The total revenue distributable for the current month, including Value Added Tax, is N715.84bn.”

He added that the sum of N14.50bn was transferred to the Excess Crude Account, thus bringing the new balance in the account to $5.1bn.