Bayelsa revenue drops

The derivation revenue accrued to Bayelsa government witnessed a sharp drop from N3 billion in July 2016 to N1 billion in August 2016.

According to a statement by the state government on Saturday, the attacks by militants in May and June reduced production by oilfields in the state as Shell and Agip shut down crude production and export.

Niger Delta Avengers had on May 28 and May 29 blown up the Nembe Creek Trunk line and the Brass Terminal crude line, which conveyed the crude produced by Shell and Agip.

“The attack which had grounded oil export from the state was responsible for the revenue drop as the derivation principle is proportionate to the volume of oil produced from the states with oil deposit,” the statement said.

The derivation revenue, which is 13 per cent of crude sales from the state for the month of August was N1 billion less, while proceeds from July stood at N3 billion.

NAN reports that the August oil revenue disbursed at the last Federation Account Allocation Committee (FAAC) was for crude oil sales proceeds for May 2016 oil production.

Retired Rear Adm. John Jonah, the Deputy Governor of Bayelsa, had on Friday presented the financial status of the state to newsmen at the Government House, Yenagoa.

He declared a deficit balance of N1.9 billion, saying that N1.4 billion was spent on bank loans; civil servants’ salaries N2.1 billion; capital payments of N3.2 billion and recurrent payment s of N1.4 billion.

The deputy governor said that payment of political appointees gulp up to N472million, thereby bringing the total outflows to N8.9 billion.

Jonah announced a gross inflow of N8.7 billion.

 

The post Bayelsa revenue drops appeared first on Vanguard News.