According to the report which was prepared by the Accountant-General of the Federation, of the 3 tiers of government, The Federal Government has the biggest draw from the account (56%) than the 37 State Governments (24%), the 774 Local Governments (20%) and other relevant agencies in the country. The major drivers of the account are made up of five items which are: gross statutory revenue (GSR), Value Added Tax (VAT), electronic money transfer levies (EMTL), and augmentation from forex equalization account. The communique explained that the Federal Government received N269.063 billion, the states received N236.464 billion, the local government councils got N173.936 billion, while the Oil Producing States received N43.214 billion as derivation (13% of mineral revenue). 

The month-on-month decline is traceable to a significant decrease in petroleum profit tax (PPT), company income tax, import and excise duties, and oil and gas royalties, also a marginal decrease in VAT and EMTL. Beyond the gloomy lenses, the country’s oil production is making steady progress and has recently risen to 1.67m barrels per day according to the NNPC report, a few thousand short of OPEC’s 1.8m bpd quota. We are convinced this will drive up line items in GSR and PPT also, we expect VAT & EMTL collection to be effective and stable into the H2