Excess Crude Account falls by $253m in one month

  • FG, states, LGs share N647.353bn as January revenue

 

The balance in Excess Crude Account (ECA), the special account for extra oil revenue above budgeted oil benchmark, had fallen to $71.814 million as against January 15, 2020 figure of $324.968 million.

The depletion is coming as the three tiers of government, comprising federal, states and 774 local government councils, yesterday shared a total of N647.353 billion as their allocation from the federation purse for the month of January.

The amount was approved by Federation Account Allocation Committee (FAAC) at its meeting in Lagos on Wednesday.

FAAC, however, did not offer explanation for the depletion in the reserves.

The crash in ECA contradicts the Central Bank of Nigeria’s (CBN) advice to the three tiers of government on the need to build buffers against the tradition of spending all earnings in the federation purse.

The meeting was presided over by the Permanent Secretary, Federal Ministry of Finance, Budget and National Planning, Alhaji Mahmoud Isa-Dutse.

The N647.35 billion shared is 9.63 per cent lower than the N716. 29 billion shared in December 2019.

Isa-Dutse, while briefing newsmen after the meeting, said the reduction in the allocation was due to what was provided by the Nigerian National Petroleum Corporation (NNPC) and the Federal Inland Revenue Service (FIRS) for the month.

He said the FIRS had explained that the shortfall of revenue was due to the reduction in economic activities which usually occurs in January, adding that revenue generation would improve as the months go by.

A breakdown of the allocation shows that the N647.353 billion comprised Statutory Revenue, Value Added Tax (VAT), Exchange Gain, Non-Oil Revenue and Excess Bank Charges recovered.

He said from the N647. 35 billion, the Federal Government got N267.38 billion, the state governments received N176.92 billion, and the local government councils received N132.94 billion.

Isa-Dutse said the Oil Producing States received N46.19 billion as 13 per cent derivation revenue and the revenue generating agencies received N23.90 billion as cost of revenue collection.

He said: “The gross statutory revenue for the month of January 2020 was N525.25 billion. This is lower than the N600.31 billion received in the previous month by N75.06 billion.

“For the month of January 2020, the gross revenue available from the VAT was N104.75 billion as against N114.80 billion in the previous month, resulting in a decrease of N10.04 billion.

“Exchange Gain yielded a total revenue of N1.04 billion, while the Non-Oil revenue was N16.29 billion.”

A communiqué issued by FAAC indicated that from the total revenue of N647.353 billion, the Federal Government received N267.389 billion, the states, N176.923 billion, and the local government councils, N132.944 billion.

Similarly, oil producing states received N46.197 billion as 13 per cent derivation revenue, while revenue generating agencies received N23.900 billion as cost of revenue collection.

A breakdown of the distribution showed that from the gross statutory revenue of N525.253 billion, the Federal Government received N243.704 billion, the states, N123.610 billion and the local government councils, N95.298 billion.

Also, oil producing states received N46.074 billion as 13 per cent derivation revenue while revenue collecting agencies got N16.567 billion as cost of collection.

From VAT revenue of N104.758, the Federal Government received N14.614 billion; states, N48.713 billion; local government councils, N34.099 billion and revenue generating agencies, N7.333 billion as cost of collection.

From the Exchange Gain revenue of N1.044 billion, the Federal Government received N0.485 billion; states, N0.246 billion; local government councils, N0.190 billion and oil producing states, N0.123 billion.

From the Non-Oil revenue of N16.298 billion, the Federal Government got N8.586 billion; states, N4.355 billion; and local government councils, N3.357 billion.

The communiqué confirmed that for the month of January 2020, there was a significant increase in Import Duty revenue while Companies Income Tax (CIT), VAT, Oil and Gas Royalties and Petroleum Profit Tax (PPT) recorded decreases.

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