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FG, states share N195bn excess crude fund

Posted by Oluyinka Akintunde, Abuja on 2005/07/12 | Views: 615 |

FG, states share N195bn excess crude fund


The Federal, states and local governments shared N195.10billion excess oil proceeds in the first six months of 2005, a report by the Federal Ministry of Finance has revealed.

The Federal, states and local governments shared N195.10billion excess oil proceeds in the first six months of 2005, a report by the Federal Ministry of Finance has revealed.

According to the report, the three tiers of government also shared N1.38trillion from the Federation Account during the same period.

From the proceeds, the Federal Government received the largest share of N89.42billion (about 45.8 per cent).

The report, which was obtained by our correspondent on Monday, also showed that the 36 states and 774 local governments in the country got N45.35billion (about 23.2 per cent) and N34.97billion (about 17.9 per cent), respectively.

The contentious 13 per cent derivation, however, accounted for the balance of excess crude oil proceeds of N25.36billion.

The breakdown of the distribution of the excess crude proceeds in each month indicated that N14.90billion was paid to the Federal Government, while N7.559billion, N5.828billion and N4.227billion were paid to the states, local governments and 13 per cent derivation.

The distribution of 50 per cent of the 2004 excess crude oil proceeds followed its approval by President Olusegun Obasanjo, in January 2005.

Nigeria had in 2004, raked in over $6billion (about N798billion) from excess crude oil sale, as a result of the rising increase in oil prices at the international market.

The excess crude oil proceeds currently stood at over $9billion as at May 2005.

The Finance Ministry report also indicated that statutory allocations of N1.26trillion and VAT of N90billion were shared between January and June 2005.

The highest statutory allocation of N225.56billion was recorded in January 2005; closely followed by February and March allocation figures of N218.65billion and N208.55billion, respectively.

Statutory allocations shared in April, May and June, were N202.43billion, N200.96billion and N208.36billion.

Of the N1.264trillion statutory allocation shared in the six months, the Federal Government received the largest chunk of N591.449billion while the 36 states and 774 local governments got N299.99billion and N231.278billion.

The sums of N141.75billion and N27.16billion were allocated to 13 per cent derivation and VAT/Import Duty Refunds.

The government realised N16.63billion, N13.4billion, N15.8billion, N14.99billion, N13.81billion and N15.31billion from the five per cent Value Added Tax in January, February, March and April, May and June 2005, respectively.

The 36 states received the highest revenue from VAT totalling N44.944 billion, while the Federal Government and the Local Governments were paid N13.482 billion and N31.461billion in the six months.

The breakdown of the states' VAT allocations revealed that the states received N8.32billion, N6.66billion, N7.92billion, N7.49billion, N6.91billion and N7.66billion between January and June 2005, while the Federal Government received N2.50billion, N2billion, N2.37billion, N2.25billion, N2.07billion and N2.30billion.

The Punch, Wednesday July 13, 2005

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