Posted by Oluyinka Akintunde, Abuja on
THE Federal Government expects a revenue shortfall of N160billion in 2005 due to a 12 per cent shortfall in oil production, the Director-General of the Budget Office of the Federation, Mr. Olabode Agusto, has said.
THE Federal Government expects a revenue shortfall of N160billion in 2005 due to a 12 per cent shortfall in oil production, the Director-General of the Budget Office of the Federation, Mr. Olabode Agusto, has said.
Speaking at an interactive with the public service on Monday, Agusto said while the 2005 budget was based on an assumed 2.71million barrels of crude oil per day, of average production for the year is 2.4million barrels.
He also said that the Nigeria National Petroleum Corporation was underpaying the Federation Account because of the N9billion it spent monthly to subsidise fuel imports.
He said that the NNPC was subsidising gasoline by N300million per day, adding that this had affected the ability of the corporation to pay the Federation Account as and when due.
He stated that the Federal Government would have to cough out N50billion of its revenue to offset its share of the N300million per day subsidy on gasoline.
The Federation Accounts Allocation Committee headed by the Minister of State for Finance, Mrs. Nenadi Usman, had at its meeting in November 2004, summoned the Group Managing Director of NNPC, Mr. Funsho Kupolokun, to explain the shortfall of N40billion in revenue from crude oil sales despites rising prices of crude oil at the international market.
On the 2005 budget, Agusto explained, "The projected revenues for 2005 are down because the budget was predicated on oil production of 2.71million barrels per day whereas actual production for the first quarter was 2.39million barrels per day.
"NNPC says that average production for the year is likely to be about 2.4million barrels per day, meaning a 12 per cent loss in production. Loss of revenue by the Federal budget is estimated at about N160billion."
The Federal Government, according to him, is expecting N1.109trillion from crude oil sales in the year 2005, N1.154trillion from oil taxes and others, N215billion from VAT, N174billion from Companies' Income Tax, N190billion from Customs and Excise Duties and N380billion from Excess Crude Account.
On the 2006 budget, the Augusto said that a total expenditure of N1.57trillion was being proposed as against N1.688trillion proposed for 2005.
The proposed 2006 budget, he noted, was based on an oil benchmark of $33 per barrels and average exchange rate of N134 to the dollar.
He gave the breakdown of the proposed expenditure in 2006 as: Ministries, Departments and Agencies, N1.174 trillion; National Judicial Council, N35billion; Niger Delta Development Commission, N20billion and Universal Basic Education Scheme, N29billion.
The PUNCH, Tuesday, August 16, 2005