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FG’s gross revenue hits N485bn in June

By on July 29, 2015

The gross revenue of the Federal Government rose for the second month in June, hitting N485.95bn ($2.44bn), Reuters reported on Monday quoting the Ministry of Finance.

The amount is 33 per cent higher than the amount the government realised in May. It included a N6.33bn refund by the Nigerian National Petroleum Corporation, a value-added tax of N64.99bn, and an exchange rate gain of N6.69bn.

In May, the government received N324.06bn in revenues and distributed N409.35bn between the federal, state and local governments.

The balance of the Excess Crude Account stood at $2.207bn, up from $2.078bn on June 23.

International oil prices rose at the end of April and benchmark Brent futures were sustained in the $60s a barrel range before falling again into the $50s a barrel range at the start of July.

The government depends on oil sales for about 70 per cent of its revenues.

The Permanent Secretary, Ministry of Finance, Anastasia Daniel-Nwoabia, said revenues were hit by a shutdown of pipelines feeding the Nembe and Forcados crude export terminals.

Shell had declared force majeure on exports of the Forcados crude stream in early May due to leaks on the main pipeline. The force majeure was lifted in mid-July.

“A price increase in crude of 9.8 per cent, recorded between April and May, was not enough to cancel the effect of a revenue drop due to a decline in the volume of crude oil sold, but the noticeable increase in revenue was as a result of blockage of some leakage in revenue sources,” Daniel-Nwoabia said.

President Muhammadu Buhari has delayed appointing his cabinet members until September in order to flush out corrupt practices and plug “financial leakages” that went unchecked under the previous administration.

He has enlisted the help of the United States to go after billions in stolen government funds, namely through oil theft.