Nigeria’s revenue from N- Gas Takoradi GSA – a special gas arrangement between Nigeria and Ghana, has dropped drastically from $10million between January and June 2015 to $1.4million in the corresponding period of 2016, New Telegraph has learnt. This slide, latest figure on revenue flow from N-Gas Takoradi to the federation account sighted by this newspaper showed, was triggered by high spate of gas pipeline vandalism.
The report showed that $10.72 million, $258.344 million, and $21.098 million were accrued from the source to federation account in 2013, 2014 and 2015 respectively. Consequently, the Federation Account Allocations Commission (FAAC), thecustodian of federation’s account, has directed the Nigeria National Petroleum Corporation (NNPC) to explain the inconsistencies in the transfer of funds to the federation account from the project.
N-Gas Takoradi GSA is a gas supply arrangement between Nigeria and Ghana and a stream of revenue accrues to federation accounts, which is approved for sharing by FAAC to the three tiers of government. A source in finance sector privy to the FAAC observation informed this newspaper that the state owned oil firm attributed the drop to attack on pipelines, which disrupted gas supply.
“The NNPC has responded to FAAC observation. The corporation responded that the incidences of pipeline vandalism impacted on the supply of gas to Ghana and as such, proceeds were not realised from the sale of gas to Ghana. However, FAAC has asked NNPC to proffer a more convincing explanation on the issue”, the source said.
The revenue flow to the federation account has been dwindling on month-by-month basis as a result of twin problems of crash in crude oil price at the global market and attacks on oil installations by groups of militants at oil rich Niger Delta region. But in August the total revenue made available to the three tiers of government increased by N16.442 billion to N510.270 billion as against previous month’s figure of N493.828 billion.
Tax collection accounted for 70 per cent of the fund. The amount comprised of statutory revenue of N315.045 billion, N6.330 billion refunded by NNPC, proposed distribution of N35 billion excess Petroleum Profit Tax; exchange rate gain of N84.263 billion and Value Added Tax collection.