Attacks on oil installations, vandalism crash monthly allocation by N90.2bn

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Despite increase in average price of crude oil at global market from $46.0 per barrel in May to $48.43 in June, sustained attacks on oil installations and pipeline vandalism have reduced total allocation available for sharing to the three tiers of government by N90.2 billion.

Chevron-pipeline

The picture was made clearer yesterday as the sum of N420 billion was approved for September for sharing as against N510.270 billion disbursed among the three tiers of government in August.

Militant attacks on oil installation led to a decrease in volume of crude oil export by 1.15 million barrels in the month of June alone.

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Permanent Secretary in the Federal Ministry of Finance, Dr. Mahmoud Isa- Dutse, confirmed the figures and the adverse effect the attacks are having on the oil-rich region when he presided over Federation Account Allocation Committee (FAAC) meeting in Abuja. The decrease in revenue cuts across statutory revenue, Value Added Tax (VAT) and Nigeria Customs Service’s duty.

For instance, while net statutory allocation was N315.045 billion in the previous month, it came down to N250.947 billion in September, VAT was N75.962 billion in previous month but came down to N64.265 billion in September.

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On statutory allocation, Federal Government got the highest sum of N120.351 billion, states, N61.044 billion, while local governments got N 47.062 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 $2.454 billion.

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