Govts share April’s N307b derivation fund

The Federal, state and local governments received N307.45 billion (excluding deductions and transfers) from the federation account’s 13 per cent derivation fund.

According to the monthly economic report of the Central Bank of Nigeria (CBN) for April, the Federal Government received N146.49 billion, while the state and local governments received N74.30 billion and N57.28 billion, respectively. The balance of N29.38 billion was distributed to the oil-producing states as 13 per cent Derivation Fund.

Federally collected revenue (gross) in April 2015 was estimated at N735.07 billion, showing an increase of 35.8 per cent above the receipts in the preceding month, but was lower than the receipts in the corresponding period of 2014 by 8.4 per cent.

At N286.24 billion, oil receipts (gross), which constituted 38.9 per cent of total revenue, was lower than the receipts in the preceding month and the corresponding period of 2014, by 21.5 and 54.0 per cent, respectively. The fall in oil receipts relative to the level in the preceding month, was attributed to the decline in revenue from crude oil and gas exports, occasioned by the drop in the prices of crude oil in the international market.

From the VAT Pool Account, the Federal Government received N10.25 billion, while the state and local governments received N34.17 billion and N23.92 billion, respectively. The apex bank added that the sums of N33.53 billion and N9.49 billion were distributed as Exchange Gain and Nigerian National Petroleum Corporation (NNPC).

“Additional revenue among the three tiers of government and the 13 per cent Derivation Fund as follows: The Federal Government received (N15.37 billion and N4.35 billion), while the state and local governments received (N7.79 billion and N2.21 billion) and (N6.01 billion and N1.70 billion), respectively.

The balance (N4.36 billion and N1.23 billion) was distributed to the oil- producing states as 13 per cent Derivation Fund. “Furthermore, the sum of N6.33 billion was received by the Federal Government from the NNPC in respect of the 8th equal installment refund of indebtedness.

Overall, the total allocation to the three tiers of government from the Federation Account and VAT Pool Account in the review month amounted to N425.14 billion, compared with N557.80 billion in the preceding month”, it added.

It stated that at N286.24 billion or 38.9 per cent of total revenue, gross oil receipt was lower than the monthly budget estimate in the preceding month by 36.8 and 21.5 per cent, respectively.

The report attributed the decline in oil receipts relative to the monthly budget estimate to the fall in receipts from crude oil and gas exports, occasioned by the drop in the price of crude oil in the international oil market.