The Nigerian National Petroleum Corporation (NNPC) revenue temple authorised as panacea to resolving federation revenue skirmish will be ready at the next Federation Account Allocation Committee (FAAC) meeting. The development came just as the three tiers of government comprising Federal Government, states and 774 local councils on Thursday night shared total revenue of N 714.809 billion as allocation for the month of July against N821 billion shared in June. The shared sum included statutory revenue, Value Added Tax (VAT), forex equalisation and additional revenue from Nigerian National Petroleum Corporation (NNPC).
Minister of Finance, Mrs. Kemi Adeosun, announced the figure on Thursday in Abuja at monthly Federation Account Allocation just as she confirmed that the proposed Nigerian National Petroleum Corporation (NNPC) revenue template will be ready at next FAAC meeting. She said, “A committee for the revenue reporting template for the NNPC and the federation account will be ready before the next meeting, it will define the flow of revenue to the federation account.
We have also set up a committee chaired by the Delta State Commissioner for Finance, David Edevire, to come out with rules on our Excess Crude to ensure that we have a rule based Excess Crude Account and will report back to the committee next month. “The issue of template is meant to achieve a reliable template for revenue reporting for NNPC. Revenue reporting to FAAC from NNPC really has not been up to date in the past 10 years and this new template will reduce deficiencies. That is why the President directed that we should come out with a new template, we are making progress, we are working with DPR, NNPC and all stakeholders, so we have made some significant progress. One of the things the President directed after the standoff two months ago, was that before FAAC, NNPC and FAAC should sit down and go through the figures and that meeting now holds on Tuesdays before FAAC. We sat down -NNPC, Office of the Accountant General of the Federation, Home Finance and we go through the figures to iron out issues before FAAC. As a result, we have fewer reconciliation than we had before”. According to Minister, the gross revenue of N597.975 billion received for the month was lower than the N694.672 billion received in previous month by N96.697 billion. “Crude oil export sales volume was 3.74 million barrels when compared with the previous month sales volume of 3.57 million barrels”.
“Despite the improved revenue, production was negatively affected in the period by shut- ins and shut down at various terminals for repairs and maintenance of ageing facilities. The VAT, import duty, Companies Income Tax (CIT) and oil royalty decreased while Petroleum Profit Tax (PPT) recorded an increase “, the Minister added. Of the amount distributed, Federal Government got the lion’s share sum of N298.288 billion; states collected N183.773 billion; local councils N138.964 billion while the sum of N49.777 billion got to oil producing states as their share of 13% derivation principle. The cost of collection/ transfer and Federal Inland Revenue Service (FIRS) refund amount to N44billion. The balance in Excess Crude Account (ECA) stood at $2.332billion.