Oil Revenue Drops $113.86m As FAAC Shares N635.55bn In January

 Accountant-General of the Federation, Mr. Ahmed Idris


Despite the price of crude oil rising from $56.83 to $57.71 per barrel in January, revenue from sales fell by $113.86 million, precipitating a drop of N19.6 billion available for sharing among the tree tiers of government compared to December 2017.

Federal, states and local governments on Thursday shared N635.55 billion as revenue generated in January with the Accountant-General of the Federation, Mr. Ahmed Idris, attributing the decline in revenue to “operational challenges” in crude oil export.

“Operational challenges caused a decrease in crude oil export by 0.36 million barrels, which reduced revenue from export sales for the federation by $113.86m,” he told newsmen in a briefing in Abuja on the outcome of the monthly Federation Account Allocation Committee meeting.

“Other major issues that impacted negatively on operations were the shut-ins and shut-downs of production at various terminals for repairs and the force majeure declared at Bonny Terminals,” he said.

Idris said the income from Petroleum Profit Tax and Companies Income Tax also decreased in the month under review.

However, there was significant increase from oil royalty and Value Added Tax, while revenues from Import Duty increased marginally.

Giving a breakdown of the revenue generated, Idris said that N404.79 billion was generated as mineral revenue, while N134.11 billion came from non-mineral revenue.

To this end, Idris said that Federal Government received N249.3 billion; states, N126.48 billion and the local governments, N97.51 billion.

He said that N52.04 billion was also shared among the oil producing states, representing 13 per cent of the oil revenue generated in the month of January.

Idris said the balance in the Excess Crude Account still remained $2.317 billion, while the balance in the Excess Petroleum Profit Tax account stood at $133 million.