Kemi Adeosun FG, States, LGs share N420bn in October

Adeosun said that N6.3 billion was refunded to the federal government by Nigerian National Petroleum Corporation (NNPC).

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Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos play Nigeria's Finance Minister Kemi Adeosun speaks at a news conference in Lagos, Nigeria. (REUTERS/Akintunde Akinleye)
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The Minister of Finance, Mrs Kemi Adeosun, on Wednesday in Abuja said N420 billion was shared in October among the Federal, States and Local Governments.

Adeosun told newsmen that same amount was shared in September.

She said that N6.3 billion was refunded to the federal government by Nigerian National Petroleum Corporation (NNPC).

The net statutory allocation is N197 billion while Value Added Tax (VAT), is N69.6 billion, an increase of N5.35 billion from the previous month.

She said that there was exchange gain of N37.3 billion while excess Petroleum Profit Tax (PPT) was N109.1 billion.

Adeosun said the Federal Government received N96.67billion, representing 52.68 per cent while states got N49billion, representing 26.72 per cent.

The local governments, she said, received N37.8 billion, amounting to 20.60 per cent of the amount distributed.

She said N13.5 billion, representing 13 per cent derivation revenue was shared among the oil producing states.

For distribution from VAT, she said that the federal government got N10 billion representing 15 per cent while the states got N33.4 billion representing 50 per cent and the local government councils got N23.3 billion representing 35 per cent.

Adeosun also said that during the month under review, the country generated N140.2 billion as mineral revenue and N98.5 billion as non-mineral revenue, showing a decrease of N41 billion from both sources.

The minister also said that the Excess Crude Account stood at 2.4 billion dollars.

She noted that there was a decrease in crude production in August which was one of the months the nation had very challenging situations in the Niger Delta.

She said that 950 barrels per day (bpd) was shut-in and that the impact was being felt on revenue.

“Of course the situation in the Niger Delta continues to affect us but we are working to resolve it, we are confident that we will gather production volumes back up as quickly as possible.

“The large driver of the lack of growth is the oil sector which is down by minus 22 per cent.

“The situation is being addressed and we are now of course seeing production volumes coming back up and we are confident that that progress will be continued.’’

She, however, said that there was growth in the agriculture and solid minerals sectors “which is very encouraging.," she added.

Adeosun said the rate at which the economy was declining was slowing down.

She said that it was encouraging and that the federal government will continue to watch and look for areas to provide far more fiscal stimulus to get growth back.

She said that it was clear from the figures from the National Bureau of Statistics that the manufacturing sector was the most challenged and that unavailability of foreign exchange was responsible for that.

She added that the sector would benefit from more consistency of foreign exchange policy.

She said “On the fiscal side we are rolling out a number of measures that will support the manufacturing sector in terms of tax relief and other measures that would allow the balance sheet of the manufacturers to be repaired.’’

On debts owed contractors, she said the ministry was working with the Central Bank of Nigeria (CBN) to find a solution to the problem.

“Clearly, it is affecting the ability to get the economy going because if contractors are owed they cannot invest.

“It also affected our stimulus because when we released funds to contractors many of them found that they were not allowed access to the funds because they were already in overdrawn positions.

“So many of these hidden debts are significant and we are working very much in conjunction with the CBN and we have already consulted with the National Assembly on what we are proposing to do to solve the problem.’’

ALSO READ: Kemi Adeosun speaks to Pulse on the economy

She, however, confirmed that the debt affected a number of sectors in the economy.

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