Excess Crude Account Falls By 89% In Last Eight Years To $473m

The Federal Government has said the country’s Excess Crude Account (ECA) has declined by 89 per cent in the last eight years.

In a statement on Wednesday, the Ministry of Finance, Budget and National Planning said the decline moved from $4.1bn in November 2014 to $472,513 in the same period of 2022.

The statement also stated that the ECA’s balance as at November 23, 2022, stood at $472,513.64.

Naija News understands that the account has depleted in the last eight years owing to lack of inflows, oil market vagaries and the country’s revenue crunch.

FAAC Shares N737bn Between FG, States, LG In October

Meanwhile, the Federation Account Allocation Committee (FAAC) at its meeting, shared a total of N736.782bn to the three tiers of government as the allocation for the month of October, 2022.

According to the Ministry of Finance, Budget and National Planning’s statement, from this stated amount, inclusive of gross statutory revenue, value added tax, exchange gain and augmentation from non-oil revenue, the Federal Government received N293.955bn, while the 36 states got N239.512 bn.

Local government councils got N177.086bn, while the oil-producing states received N26.228bn for 13 per cent derivation.

The communiqué issued by the FAAC at the end of the meeting indicated that the gross revenue available from VAT for October 2022 was N213.283bn, which was an increase distributed in the preceding month.

While the Federal Government got N31.992bn from it, states received N106.642bn, while local government councils were given N74.649bn.

But the gross statutory revenue of N417.724bn distributed was lower than the sum received in the previous month, from which the Federal Government was allocated the sum of N206.576bn; states, N104.778bn; local councils, N80.779 billion; and oil-producing states, N25.591bn.

Also, N70 billion augmentation was distributed to the three tiers of government. The Federal Government received N36.876 billion; states got N18.704 billion; while local government councils were given N14.420 billion.

An extra N30bn augmentation from non- oil revenue was also distributed. The Federal Government received N15.804bn; states got N8.016bn; while local government councils were given N6.180bn.

The communiqué further disclosed N5.775bn from exchange gain was shared by the three tiers of government. While the Federal Government received N2.707bn, states got N1.373bn, whereas local government councils were given N1.058bn.  On the other hand, oil-producing states got N637m.

Moreover, oil and gas royalties, petroleum profit tax and import duty recorded considerable decreases, while VAT and companies income tax increased significantly. However, the excise duty increased marginally.

According to the communiqué, the total revenue distributable for the current month of October was drawn from statutory revenue of N417.724bn; VAT, N213.283bn; exchange gain, N5.775bn; and N100bn for augmentation from non-oil revenue, bringing the total distributable for the month to N736.782bn.