Kunle Aderinokun
28 October 2009
Abuja — Revenue received by the Federal Government from crude oil was N148.98 billion or 29.82 per cent short of the budgeted estimate of N449.98 billion in the second quarter-ended June, 2009.
The oil revenue profile, which was net of costs and other deductions fared better in the first quarter, in which receipts fell below budgeted estimate by N102.56 billion or 22.63 per cent.
The Federal Government, which made these known in the 2009 Second Quarter Budget Implementation Report of the Budget Office of the Ministry of Finance obtained by THISDAY, attributed the "underperformance" to the "inability to achieve the oil production target of 2.292 million barrels per day (mbpd)."
Before any deduction, the government had, as at the end of the review period, realised revenue from the sale of crude oil, which had underperformed by N91.76 billion or 9.94 per cent, against the budgeted estimate of N923.21 billion.
The budget office reported that Petroleum Profits Tax (PPT), gas tax, and gas sales also underperformed against the budgeted estimates of N319.39 billion, N23.9 billion, and N126.62 billion by N43.66 billion (or 13.67 per cent), N23.9 billion (or 100 per cent ), and N82.33 billion (or 65.02 per cent) respectively.
It, however, pointed out that royalties exceeded the budgeted estimate of N159.71 billion by N22.14 billion or 13.86 per cent for the period under review.
According to the Budget Office, indications from NNPC suggest that improvement in receipts in January 2009, from oil companies, which were indebted to government, is largely responsible for this. On the whole, the gross federally collectible revenue for 2009 was projected at N5.305 trillion, with a quarterly and half-year estimate of N1.326 trillion and N2.652 trillion respectively.
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