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Oil states to get N354 billion in 2005

Posted by The Port Harcourt Telegraph on 2005/01/09 | Views: 299 |

Oil states to get N354 billion in 2005


From a projected oil revenue of N2,726,000,000,000 (N2 trillion) in 2005, oil producing states are expected to get N354 billion, being 13 per cent set aside for derivation.

From a projected oil revenue of N2,726,000,000,000 (N2 trillion) in 2005, oil producing states are expected to get N354 billion, being 13 per cent set aside for derivation.

The total sum (N2.3 trillion) is to go into the Federation Account, according to the revised 2005 Appropriation figures sent to the National Assembly by the Presidency last week.

A summary of the oil revenues shows that crude oil sales will turn in N1.318 trillion to the country's coffers; Petroleum Property Tax, N950 billion and Royalties, N395 billion. Other oil revenues will account for N63 billion. Non-oil revenue will bring in a little over half a trillion naira.

From the Federal Inland Revenue Service (FIRS), the government is targeting a gross earning of N214.5 billion from Companies Income Tax (CIT) and N174 billion from Value Added Tax (VAT).

With a deduction of four per cent being the cost of collection for these taxes, the net collection for CIT will become N205.9 billion and for VAT N167 billion. A net total of N373 billion is expected from FIRS. Although, a total of 204.4 billion is projected as revenue from Customs and Excise in 2005, a seven per cent deduction as cost of collection gives a net total of N190.1 billion.

In all, the Federal Government is targeting non-oil revenue of N563.1 billion.
Apart from crude oil and non-oil revenue, the government is expecting another N100 billion from unspecified independent services; N54 billion from Education Tax and other levies.

It was gathered that even though the government projected N3.289 trillion from oil revenue, it got only a net total of N2.726 trillion because N563 billion was deducted as cost of production for crude oil.

The Federal Government share of oil revenue in 2005 is put at N1.150 trillion. Its share from the VAT pool is N25 billion, share of Customs and Excise is projected at N92 billion while from CIT, N100 billion as well as an independent revenue source of N100 billion. In all, the Federal Government targeted share of accruable revenue in 2005 is put at N1.467 million.

In 2004, the Federal Government's share of revenue was N1.122 trillion while it was N1,025 trillion in 2003.


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Comments (3)

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Abieyuwa(Edo, Nigeria)says...

Otasowie means evening life is better than morning life. There is an error in your “evening life is better than evening life”?

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Naija g(Houston, Minnesota, US)says...

Sokari doesn’t mean joy. Joy is Biobela. Go to the village and ask the meaning of the name.

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.