More money trouble for Nigerian states, revenues plunge further

The financial crisis of Nigeria’s Federal Government and the states has worsened,  with a fall in government revenues recorded in March.

Revenues fell to 299 billion naira ($1.50 billion), down from 345.095 billion naira ($1.73 billion) in February.

Finance minister, Kemi Adeosun blamed low oil prices for the fall.

“The federation accounts receipts are among the lowest in recent memories. We are looking at 299 billion this month and that is because of the very low oil pricing,” she told reporters.

Adeosun said that the rainy day fund, the Excess Crude Account, stood at $2.3 billion, up slightly from $2.26 billion.

Nigeria relies on crude sales for about 70 percent of government revenues and has been hit hard by the sharp fall in global crude prices since mid-2014.

Many states have been unable to pay public salaries in time or fund infrastructure projects and other state services.