Bloomberg News

Nigerian Government Revenue Climbs 32% on Oil Taxes

August 29, 2012

(Corrects currency conversion in first paragraph of story that ran on July 20.)

Nigerian government revenue increased 32 percent to 763.6 billion naira ($4.7 billion) in June from the previous month, boosted by company and oil taxes.

The government distributed 569.4 billion naira to federal, state and local administrations last month, Accountant-General of the Federation Jonah Otunla said in a statement handed to reporters in Abuja, the capital, yesterday.

Nigeria is Africa’s top oil producer and the government earns 80 percent of revenue from crude exports. The price of oil jumped 10 percent in New York since June 1, reaching as high as $92.30 a barrel today. Government revenue from oil increased 11 percent to 529.9 billion naira in June from the previous month, Otunla said.

The Federation Account Allocation Committee transferred 207.9 billion naira into Nigeria’s excess-crude account, which the government uses to save windfalls when international oil prices exceeds its budgeted price of $72 a barrel. That brought the total in the excess-crude account to $6.9 billion, Yerima Ngama, minister of state for finance, told reporters in Abuja yesterday.

Nigeria’s National Economic Council, which comprises the country’s 36 state governors, the finance minister and the central bank governor, agreed on June 25 to boost the excess- crude account to $10 billion to provide a buffer against a global economic slowdown.

About 115 billion naira was transferred to the government’s non-oil excess crude account, Babayo Shehu, director of funds at the accountant general’s office, told reporters.

To contact the reporter on this story: Maram Mazen in Abuja at mmazen@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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