Indications has emerged that Nigerian economy was yet to experience strategic improvement, after the Federal Government disclosed that the revenue shared between the three tiers of government slumped to N467.8 billion in August.
The apex government further disclosed that the revenue shared by Federal, state and local government was N184.2 billion less than the N652 billion shared in July.
Minister of finance, Kemi Adeosun, who disclosed the revenue shared by shared by the governments yesterday, hinted that the fund was inclusive of Value Added Tax (VAT) of N80.53 billion.
Adeosun lamented that the decline in revenue was caused by a drastic fall in revenue from Companies Income Tax (CIT) due to the expiration of the deadline for filing tax returns.
The minister, however, said oil revenues recorded an increase due to rise in export sales by $62 million.
According to her, the increase in the average price of crude oil from 50.27 dollars per barrel to 51.05 dollars per barrel and a significant increase in export volume by 1.20 million barrels resulted in increased revenue from export sales for the federation by 62 million dollars.
“Despite the increases, there were issues of leaking flow lines, shut-ins and shutdowns at terminals for maintenance,” she added.
In the breakdown of revenue given by her representative, the Permanent Secretary for the ministry, Mahmoud Dutse, at the end of the monthly Federation Account Allocation Committee (FAAC) meeting on Tuesday in Abuja, Gross statutory revenue was put at N387.31 billion.
Adeosun said the Federal Government received N193.04 billion, states N130.69 billion and local governments N98.01 billion.
She added that N31.59 billion was given to the nine oil producing states as their 13 per cent derivation, hinting that balance in the Excess Crude Account (ECA) was at $2.3 billion.
Earlier, Chairman, Forum of Finance Commissioners, Mahmud Yunusa, said it was time for the states to begin to look inwards to shore up their revenue.
“States will explore other options of revenue to depend less on revenue from the centre. We need to block leakages in revenue and come up with reforms to shore up revenue.
“We are also working on cost of running governance and any cost that is not necessary in running government needed to be reduced.”
He said reforms were currently on in the states to optimise the collection processes for revenue, adding that he was optimistic it would reduce dependence on revenue from the centre to about 50 to 60 per cent.