Nigeria moves closer to withdrawal of petrol subsidy

The country’s Federation Accounts Allocation Committee (FAAC) has made the proposal for subsidy removal, which is to be passed to President Goodluck Jonathan.
After its meeting on Monday, Chairman of Commissioners of finance forum, Mr Timothy Odaah, said the fuel subsidy has not solved the problem for which it was intended, adding that only a few privileged individuals are benefiting from it to the detriment of the majority Nigerians.
FAAC last month set up a committee to look into the possibility of removing fuel subsidy. The committee was made up of a member from the commissioners’ forum, the customs, state accountants general and the minister of state for finance among others.
Revenue for the month of March 2014, declined by N52.387 billion as the gross revenue for the month stood at N614, 368 billion as against N666,745 billion for the previous month.
Also addressing journalists at the end of the meeting, the Accountant General of the Federation Mr. Jonah Otunla attributed the decline in revenue to the vandalization of oil pipelines and oil theft, the shut-in at Qua Ibo terminal and the Fracados as well as some repair works on pipeline leaks at Bonny and Brass.
Meanwhile, the three tiers of government shared N641.380 billion along with the N7.617 billion refunded by the NNPC and the N36.549 billion from the Subsidy Reinvestment Programme (Sure-P).
Out of the N530.095billion statutory allocation for March, the Federal Government was issued a cheque for the sum of N249.084 billion (52.68 per cent), the 36 states and the Federal Capital Territory got N126.339 billion amounting or 26.72 per cent while the 774 local governments shared N97.402 billion (20.60 per cent ) among themselves.
The three tiers of government also shared proceeds of the N80.775 billion from the Value Added Tax (VAT), with the federal government receiving 15 percent or N9.116billion, states, 50 percent or N30.388 billion and local governments councils the remaining balance of N21.271billion.
The oil producing states got N57.270 billion as the 13 per cent derivation fund.