A Review of the Nigerian Energy Industry

Excess Crude Account now $3.18bn as FG, States, LGs share N675.6bn

mrs-okonjo-iweala13 December 2013, Abuja – Indications emerged Thursday that the Excess Crude Account (ECA) has been depleted to only $3.18 billion.

After some initial delays, the Federation Account Allocation Committee (FAAC) last night finally shared a total distributable revenue amounting to N675.650 billion among the three tiers of government for November.

The FAAC meeting for the period under review ought to have been concluded by Wednesday but there had been tardiness in convening the members partly because revenue collections by various revenue generating agencies were yet to be collated.

Other sources alleged that there was little revenue to share.
Earlier yesterday, the state commissioners of finance threatened to boycott the meeting and return to their respective locations as the leadership failed to convene the meeting.

But they were restrained by the Minister of State for Finance, Alhaji Yerima Ngama, who promised that frantic efforts were being made to hold the meeting later yesterday.
But Ngama later told journalists that the FAAC meeting day had been brought forward in view of the Christmas season to enable states pay workers salaries on time.

He said the delays were caused by pressure from other official engagements such as the Federal Executive Council (FEC) meetings.

However, shortfalls in recent times had been augmented by almost consistent withdrawals from the ECA, created to provide succor in rainy days.

The Gross revenue for the period under review amounted to N597.752 billion which was higher than the N539.553 billion realised in the previous month.

Mineral revenue amounting to N490.765 billion was however, higher than the N465.057 budgeted for the month. However, non-mineral revenue of N106.987 was lower than the budgeted amount of N158.711 billion in the period under review.

The Net Statutory Allocation stood at N535.204 billion complemented by revenue from Value Added Tax (VAT) which totalled N91.730 billion, compared to N66.346 billion collected in October.

Briefing journalists last night after the monthly meeting of the committee in Abuja, Ngama said there was need for states to step up their internally generated revenue, noting that the current total tax collection was only seven per cent of Gross Domestic Product (GDP).

He said strategies were being mapped out by the committee to enhance non-oil revenue.
A breakdown of the sharing of the statutory revenue showed the federal government received N252.239 billion while the states shared N127.939billion. The local governments received N98.636 billion while the sum of N56.390 billion was distributed to oil and gas producing regions under the 13 per cent derivative principle.

For the VAT collections, the federal government received the sum of N13.209billion; states got N44.031 billion while the local governments shared N30.821 billion.
Other revenue shared was the N7.617 billion- refund from the Nigerian National Petroleum Corporation (NNPC) as well as N35.549 billion proposed for distribution under the Subsidy Re-investment Empowerment Programme (SURE-P).

– This Day

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