Nigerian government revenues showed signs of rebound in May thereby increasing amounts shared among the three tiers of government for the first time in several months.
Minster of finance, Kemi Adeosun announced that a gross statutory revenue of N237.566 billion was received for the month which was higher than the N213.817 billion received in the previous month by N23.649 billion. According her, “Companies Income Tax( CIT) recorded a marginal increase even as the time for companies to file their returns is yet to fall due.”
Revenues of the Africa’s largest economy had dropped to record low as prices of oil, which accounts for well over 80 percent of government incomes slumped to incredible levels.
Besides, oil pipeline vandalisation in the country’s oil rich Niger Delta region has seen substantial drops in output. The country now struggles to meet its 2.2mpd output quota by the Organisation of Petroleum Exporting Countries (OPEC).
Adeosun said the slight improvement in revenue was due to increased accruals into the Federation Account from non-oil and mineral revenue sources in the month of May.
The slowed full takeoff of President Buhari’s administration had slowed economic activities and is now leading the county to an imminent economic recession, a situation which has also pulled down consumption and consequently accruals from Value Added Tax (VAT).
But the finance minister told journalists at the end of the Federal Accounts Allocation Committee (FAAC) meeting in Abuja that statutory allocation and Value Added Tax (VAT) also recorded slight improvements during the month under review.
However, Excess crude account balance remained unchanged at $2.261 billion.
According to the finance minister, N237.466 billion was available for statutory allocation compared to N213.817 billion realised last month, while Value Added Tax( VAT) improved slightly to N62.649 billion compared to N62.511 billion shared last month.
The three tiers of government shared N305.128 billion for May Allocations as against N281.5 billion shared in previous month.
Of the net statutory allocation of N230.9 billion approved for sharing, the federal government got N122.830 billion, states got N57.229 billlion; Local governemnt councils got N44.121 billion while oil producing states got. N16.738 billion representing their share of 13% derivation.
