Connect with us
Advertise With Us

COVER STORIES

CBN, FIRS Differ Over N26.7bn Remittances To Federation Account

Published

on

The Central Bank of Nigeria (CBN) and the Federal Inland Revenue Service (FIRS) have taken opposing positions on revenue remittances by the latter to the Federation Account domiciled with the apex bank.

Their disagreement emanates from a shortfall in revenue generated from Petroleum Profit Tax (PPT), Value Added Tax (VAT) and Company Income Tax (CIT), amounting to N26.703billion which the FIRS claimed it remitted to the Federation Account between December 2018 and January 2019.

While the FIRS reported that N321.23 billion as total PPT and CIT collections for December 2018 was remitted to the Federation Account with the CBN, the apex bank’s component statement showed that N294.62 billion was received from FIRS during the period.

The CBN figure showed a shortfall of N26.61 billion of the amount the FIRS claimed it paid into the account.

The document, which LEADERSHIP accessed, revealed that FIRS allegedly posted N199.16 billion as total PPT and VAT collections in January 2019 while the CBN component statement to the Federation Account Allocation Committee (FAAC) post-mortem sub-committee indicated that FIRS paid N199.07 billion, which was a shortfall of N90.88 million.

Central Bank Governor, Godwin Emefiele.

LEADERSHIP learnt that the post-mortem sub-committee of FAAC which extensively deliberated upon the reason for the differences between the two agencies could not resolve the matter at its last monthly meeting held at the Board Room of Revenue Mobilisation Allocation and Fiscal Committee (RMFAC) on April 24, 2019.

The committee, therefore, directed the two agencies to meet and reconcile their accounts and report back at the next meeting. The meeting was attended by representatives of RMFAC, commissioners of finance and accountants-general from the six geopolitical zones as well as representatives of some revenue generating and accounting agencies.

 

NNPC Pays N153.01bn Into Federation Account

Relatedly, the Nigerian National Petroleum Corporation (NNPC) has transferred N153.01 billion into the Federation Account in January. The corporation disclosed this in its Financial and Operations Report for the month of January which it released in Abuja yesterday.

“Within the period under focus, NNPC transferred N153.01 billion into the Federation Account. Cumulatively, from January 2018 to January 2019, the Federation Account and Joint Ventures (JV) received N905.45 billion and N658.66 billion respectively, under the column of Naira Payments to the Federation Account,’’ NNPC said in the report.

The corporation added that it made a trade surplus of N15.04billion for January 2019, an increase of 24 per cent over the N12.13 billion surplus it posted in December 2019.

NNPC attributed the positive financial position to the improved performance of its upstream subsidiary, Nigerian Petroleum Development Company (NPDC), which recorded surplus in spite of reduced operational activities during the period.

The report showed NPDC’s sustained revenue drive, evident from recent average weekly production of 332,000 barrels of crude oil per day. It noted that this had made achieving 500,000bpd production by 2020 plausible.

According to the report, the NPDC’s position contrasts with the high expenditure levels posted by two other entities of the corporation – the Petroleum Products Marketing Company (PPMC) and Duke Oil -although both ended the month with profit.

In terms of sales and remittance of crude oil and gas proceeds, the corporation recorded a total export receipt of $381.70 million in the month under review as against $345.68 million posted in December 2018.

A breakdown of the figure indicated that contributions from crude oil amounted to $269.43 million while gas and miscellaneous receipts stood at $111.75 and $0.52 million.

On supply, 1,998.61 million litres of petrol was supplied into the country through the Direct-Sale-Direct-Purchase (DSDP) crude-for-product arrangement in the month under review. The number was slightly higher than the 1,789.20million litres of petrol supplied in the month of December 2018.

On pipeline vandalism, the corporation recorded 230 hacked pipeline points, leaving only two ruptured. This marks 11 per cent improvement from the 264 vandalised points posted in December 2018.

A further breakdown of the incidents showed that Mosimi-Ibadan, Ibadan-Ilorin and Aba-Enugu pipelines accounted for 67, 62 and 30 points which translated to 29 per cent, 27 per cent and 13 per cent of the vandalised points.

“The Warri-River Niger axis accounted for 10 per cent and other locations accounted for the remaining 21 per cent of the pipeline breaks,’’ the report added.

In the gas sector, natural gas production increased by 2.22 per cent at 245.83billion cubic feet compared to the output in December 2018, translating to an average production of 8,194.34 million standard cubic feet of gas per day (mmscfd).

Of the volume supplied in January 2019, according to the report, a total of 151.50bcf of gas was commercialised, consisting of 38.03bcf and 113.47 bcf for the domestic and export market. The figure translates to a total supply of 1,226.83 mmscfd of gas to the domestic market and 3,780.24 mmscfd of gas supplied to the export market during the period.

This implies that 61.73 per cent of the average daily gas produced was commercialised while the balance of 38.27 per cent was re-injected, used as upstream fuel gas or flared. The report also disclosed that gas flare rate was 7.52 per cent for the month under review; translating to 610.07mmscfd compared with average gas flare rate of 9.76 per cent, that is 770.31 mmscfd for the period – January 2018 to January 2019.

 

NCS generates N197bn In 3 months

In another development, the Nigerian Customs Service (NCS) has generated N197 billion in the first quarter of 2019.

NCS’ documents accessed at the weekend showed that N76.095 billion was generated in January while N52.073 billion was raked in February, and N68.857 billion generated in March, totalling N197 billion for the period.

The collection of N68.857 billion in March accounted for 96.65 per cent of the 2018 approved monthly budget of N70.710billion, which is higher than February revenue by 29.67 per cent.

A breakdown of the figures reveals that revenue from import duty was N157.221 billion; excise duty: N27.022billion while N527.681 billion was realised from fees within the same period. Also, auction sales of ceased items by amounted to N38.951 million between January and March, with penalty charges rising up to N44,796.92 while special levies stood at N12.216billion, according to a report of the revenue collected by the NCS to FAAC in April.

MOST POPULAR

%d bloggers like this: