The oil revenue for the month of September dropped down to N321 billion as compared to the N369 billion collected in August, according to the Permanent Secretary in the Ministry of Finance, Mrs. Anastasia Daniel-Nwaobia.
The drop was attributed to the maintenance of various pipelines in the Niger Delta, as well as the decline in the worldwide price for oil from from $43 per barrel to $42 per barrel.
In response to this situation, the Ministry of Finance has looked to increasing revenue generated through taxation. Mrs. Daniel-Nwaobia noted that the Federal Government is exploring ways of increasing the tax revenue through enlarging the tax net.
The Federal Government has discussed methods to diversify the economy, according to officials in Buhari’s administration. Industries such as steel and iron are among those Buhari’s government hopes to strengthen. During his visit to India, President Muhammadu Buhari will be discussing a proposed $64 billion investment in iron and steel production. The Ministry of Mines and Steel and the Finance Ministry are also working closely to combat illegal mining operations.
The decreased oil revenue has also affected the funds available for allocation. In addition, the process of allocation has been slowed by the new Treasury Single Account (TSA). The TSA requires an authority to incur expense (AIE) from the office of the Accountant General of the Federal Government (OAGF) prior to accessing funds.