Fire on the mountain, 36 states call for fuel subsidy removal.

fuel subsidy removal
On Tuesday, the 36 states of the federation declared that there was
no going back on their demand for the Federal Government to put a
stop to the removal of subsidy on petroleum products in the
country. It was learnt that the Federal, states, local Government shared N756 billion for June alone.

The Chairman, Finance Commissioners Forum, Timothy Odaah,
said extensive discussions on the issued continued during the
Federation Accounts Allocation Committee, FAAC meeting, even as
the report of its committee was still being awaited.
Mr. Odaah was speaking, just as the Minister of State for Finance,
Bashir Yuguda, said Federal, States and Local Governments shared
revenue allocation of about N756 billion from the Federation
Account for June.

Mr. Yuguda told journalists at the end of the FAAC meeting that the
shared amount comprised funds from statutory oil revenue,
Subsidy Reinvestment and Empowerment Programme, SURE-P,
excess non-oil revenue and Value Added Tax, VAT sources.
According to him, distributable statutory revenue for the month
was N582.9 billion, while N35.5 billion was proposed for
distribution under the Subsidy Reinvestment and Empowerment
Programme, SURE-P.

An additional N71 billion, he said, came from the excess non- oil
revenue proposed for distribution, with total revenue distributable
for the current month, including Value Added Tax, VAT, of N66.4
billion, put at approximately N756 billion.
A breakdown of the revenue distribution showed that the Federal
Government received N270.144 billion, representing 52.68 per
cent; States, N137 billion, representing 26.72 per cent; and Local
Governments received N105.6 billion, amounting to 20.60 per
cent.

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Mr. Yuguda said that about N57.9 billion, representing 13 per cent
derivation revenue, was also shared among the nine oil producing
states as derivation revenue.
On VAT, he said that the revenue collected for the month was
about N66.4 billion as against the N65.4 billion distributed in May,
representing an increase of N999 million.

Mr. Yuguda disclosed that the nation generated N784.9 billion as
mineral and non-mineral revenue in June as against N582.9
billion budget expectation for the month, an excess of N201.9
billion.
He said that from the excess funds for the month, excess crude
account got N50.35 billion, N45 billion to Domestic Excess
Account and N35.55 billion for SURE-P.

“After deducting all this, we still had N71.05 billion, which will be
taken into the Excess Non- Mineral Revenue Account,” he said.
“Mineral revenue collected in June was N517.3 billion,
representing N10.1 billion higher than N507.2 billion realised in
the preceding month. Non-mineral revenue collected in the month
was N267.6 billion.”

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The minister said that the non-mineral revenue collected in June
dropped by N69.3 billion from N336.8 billion realized in May.
On the proposed removal of fuel subsidy, the Chairman, Finance
Commissioners Forum, Timothy Odaah, said the forum had
extensive discussion on it.

According to Mr. Odaah from the report received, there was a great
improvement in non-oil revenue received for the month, which
showed that Nigeria was becoming less dependent on oil.
“Likewise, the issue of subsidy removal came up again and we still
stand on the removal of fuel subsidy, because it will be of much
greater benefit to the states. The intention of the Federal
Government is being defeated by its abuse by some people,” he
said.

He said states were determined to ensure that the demand for total
removal of fuel subsidy was pursued to its logical end, as the fuel
subsidy regime as currently operated has been a fraud.

Mr. Odaah, who is the Commissioner of Finance for Ebonyi State,
said that while the report of the 12-member committee on the
review of subsidy was still being awaited, the current position of
FAAC was that subsidy must be removed since the purpose for
which it was established had been defeated.

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“The issue of subsidy removal re-echoed today and it became an
issue of discussion and the report of the committee set up three
months ago is being awaited and we still stand on the removal of
subsidy as it will be of much benefit to the states because what we
have now is like robbing Peter to pay Paul.

“The purpose by which government set up subsidy is being
defeated and so it should be based on consumption”, Mr. Odaah
added.

Reflecting on the revenue generation trend, the Commissioner
explained that there had been a tremendous improvement in non-
oil revenues in the past few months, attributing it to increased
reduction in the rate of oil