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FG nets N2.075trillion from crude oil sales

Posted by Michael Faloseyi, Abuja on 2005/10/12 | Views: 2546 |

FG nets N2.075trillion from crude oil sales


Total revenue realised from the sales of crude oil between January and June this year has been estimated at about N2.075 trillion or 92 per cent of the total federally collected revenue of N2.3trillion.

Total revenue realised from the sales of crude oil between January and June this year has been estimated at about N2.075 trillion or 92 per cent of the total federally collected revenue of N2.3trillion.

The National Economic Intelligence Committee in its report submitted to President Olusegun Obasanjo on Tuesday, said that non-oil revenue within the period amounted to N177.02billion.

The report indicated that the Nigerian National Petroleum Corporation paid for crude oil bought from the Federal Government at the market prices and at the ongoing exchange rate of dollar to Naira.

It said that the NNPC has not redeemed N122.37billion debt owed the Federation Account over purchase of crude oil for local consumption in June 2005.

A source in the corporation has also reacted that NNPC might be unable to redeem the money because of the precarious financial situation caused by the subsidy on the domestic consumption of petroleum products.

He said that the corporation was losing N14 on each litre as subsidy on premium motor spirit, or petrol consumed in the country.

He said that the Federal Government has the option of subsidising domestic consumption of petroleum products if it did not want deregulation.

Meanwhile, the NEIC report has said that the Federal Government lost N5.6 billion to import duty concession on goods with the cost, freight and insurance value of N15.529billion during the period under review.

The committee also said that the concession regime would reduce with the implementation of the new ECOWAS Common External Tariff, which took effect from October 1, 2005.

The PUNCH, Thursday, October 13, 2005

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