Federal Government In Cash Trouble

Federal Government In Cash Trouble

Federal Government In Cash Trouble

There are concerns in government circles that the country’s revenue projection for the 2013 fiscal year may not be realised.

Saturday PUNCH learnt that the gross oil revenue accruing to the Federation Account had dwindled seriously in recent times.

The drop in revenue has raised fears that the Federal Government may not be able to implement the 2013 budget. Sources in government attributed the drop to massive oil theft, illegal bunkering and pipeline vandalism.

Figures obtained by this newspaper, showing the monthly allocations to the three tiers of government by the Federation Accounts Allocation Committee, revealed that the country only realised N3.893tn as gross federally collected revenue in the first six months of 2013.

This sum, according to an 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 six months period.

According to the FAAC document, the monthly budgeted gross federally collected revenue for the country is put at N702.54bn. This is expected to be realised from three revenue sources – mineral revenue, N465.057bn; non-mineral revenue, N158.711bn and Value Added Tax, N78.77bn.

However, further investigations revealed that the N3.893tn revenue for the first half of this year was earned as follows: January, N651.26bn; February, N571.7bn; and March, N595.71bn. In the months of April, May and June, revenue receipts by the country were N621.07bn, N590.77bn and N863.02bn respectively.

In the same vein, the country recorded significant revenue drop between January and May.

The shortfalls were recorded as follows; January N51.28bn; February N130.84bn; March N106.84bn, April N81.47bn and May N111.77bn. Curiously, there was a 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 gathered that unless the revenue generating agencies step up their efforts and leakages in the oil sector were taken care off, the country might only realise about N7.78tn for the 2013 fiscal year instead of the projected N8.43tn going by the first-half revenue trend.

During the week, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, said that the country was losing 400,000 barrels of crude oil per day to illegal bunkering and vandalism of oil pipelines.

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