There are strong concerns in government circle that the country’s revenue projection for the 2013 fiscal year may not be realized.
According to Saturday Punch the gross oil revenue accruing to theFederation Account had dwindled seriously in recent times or days.
Drop in revenue has raised fears that the Federal Government may not be able to implement the 2013 budget fully. Sources in government attributedthe drop to a massive oil theft, illegal bunkering and vandalism of pipeline.
The figures obtained by this newspaper, showing the monthly allocations to the 3 tiers of government by the Federation Accounts Allocation Committee, showed that the country only realized N3.893tn as gross federally collected revenue in the first 6 months of 2013.
This sum, according to the analysis of the document, showed a shortfall of N321.73bn against the projected revenue of N4.215tn that was projected for the country for the period of 6 months.
According to the FAAC document, the monthly budgeted gross federally collected revenue for the country in put at N702.54bn. This is expected to be realized from 3 revenue sources – mineral revenue, N465.057bn, non mineral revenue, N158.71bn and N78.77bn Valued Added Tax.
However, the further investigations revealed that the N3.893tn revenue for the first half on this year, 2013, was earned as follows – in January, N651.26bn, February, N571.7bn, and in March, N595.71bn. In months of April, May and June, revenue receipts by the country were N621.07bn, N590.77bn and N863.02bn respectively.
The country actually recorded significant revenue drop between January and May.
Shortfalls were recorded as follows: In January N51.28bn; February N130.84bn; March N106.84bn, April N81.47bn and May N111.77bn. Curiously, there was a major surplus of N160.48bn in June as the country’s revenue receipts of N863.02bn exceeded the budgeted sum of N702.54bn owing to completion of pipeline repairs in some terminals.
It was also gathered that unless the revenue generating agencies step up their efforts and leakages in the area of oil sector were taken care off, the country might only realize about N7.78tn for the year 2013 fiscal yearinstead of the projected N8.43tn going by the first-half revenue trend.
The coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, during the week said that the country was losing 400,000 barrels of crude oil per day to illegal bunkering and vandalism of oil pipelines.
The Finance Minister, who last Tuesday in Abuja appeared before the House of Representatives Joint Committee on Appropriation/Finance, said, “We are losing revenue; 400,000 barrels of crude oil are lost on a daily basis due to illegal bunkering, vandalism and production shut-in. The quantity of oil produced for that day will be lost because it means government cannot sell it and it means a drop in revenue.”
Naijaparrot.com
Okonjo-Iweala, also explained that the reason President Goodluck Jonathan sought to amend the 2013 Appropriation Act as against sending a supplementary budget to theNational Assembly.
She also pointed out that with the revenue shortfalls currently facing the country, there was no way the government could afford a supplementary budget.
Because of the shortfall in revenue, the Federal Government had constituted a committee headed by Alhaji Isa Yuguda (Bauchi State Governor) to address the oil theft problem. While other members of the committee are Delta State Governor, Dr Emmanuel Uduaghan, Anambra state Governor, Peter Obi and Gombe state Governor, Alhaji Ibrahim Dankwambo.
Source : Punch
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