The cash shared for March, given out yesterday after the Federation Accounts Allocation Committee (FAAC) meeting, dropped significantly to N299.747 billion from the N338.765 billion shared for February.
The shared amount is the lowest in over five years.
But the states got a relief because of the decision of President Muhammadu Buhari that federal government deductions should be shelved this month.
Permanent Secretary of the Federal Ministry of Finance Mahmud Dutse announced that the Federal government got N109.113 billion; state governments (N55.344 billion) and Local Governments (N42.668 billion). Oil producing states received N19,750 billion as 13 per cent derivation.
An amount of N61. 665billion was shared from Value Added Tax (VAT) proceeds out of which the Federal Government got N9.250 billion; States (N30.833b) and local governments (N21.583b).
The permanent Secretary noted that the statutory revenue of N232. 619 billion received for the month was lower by N37.880 billion to the N270.499 received in the previous month.
The fall in revenue he said, was due to shut-in and Shut-down of oil production for repairs and maintenance which continued during the period.
Dutse added that there was a slight increase in production of crude oil in December 2015 but the resulting income was marginal due to a 10 per cent drop in crude oil prices.
The drop in the average price of crude oil from $43.40 in November to $39.04 in December, 2015 resulted in revenue loss of $22.55 million. Another reason for the fall in the FAAC revenue, according to Dutse, “is the significant decline in incomes from Petroleum Profit Tax and Companies Income Tax.”
The sum of N6.330 billion was refunded by the Nigeria National Petroleum Corporation (NNPC) to the Federal government and there was an exchange gain of N2.894 billion which was proposed for distribution.
He said the balance in the Excess Crude Account (ECA) still stands at $2.259 billion.