Excess Crude Account swells to $4.05bn

Ngozi Okonjo-Iweala

Dr. Ngozi Okonjo-Iweala, Minister of Finance

16 July 2014, Abuja – The balance in the Excess Crude Account (ECA) has increased to $4.05 billion, following the approval by the Federation Account Allocation Committee (FAAC) for the transfer of N50.35 billion into the ECA.

At the end of the FACC meeting for the distribution of June 2013 allocation to the three tiers of government, members of the committee, especially those from the states, kicked against the retention of fuel subsidy

They described the retention of fuel subsidy as a fraud against the country.

The Chairman, Forum of Commissioners of Finance,  Timothy Odaah, who made known the position of the Committee while briefing journalists shortly after this month’s FAAC meeting in Abuja, yesterday noted that while the report of the 12-man committee on the review of subsidy was still being awaited, “the current position of FAAC is that subsidy must be removed since the purpose for which it was established had been defeated.”

“The issue of subsidy removal re-echoed today and it became an issue of discussion and the report of the Committee set up three months ago is being awaited and we still stand on the removal of subsidy as it will be of much benefit to the states, because what we have now is like robbing Peter to pay Paul. The purpose for which government set up subsidy is being defeated and so it should be based on consumption.”

On revenue generation, Odaah expressed delight that there has been a tremendous improvement in non-oil revenue, noting that there is a reduction in the rate of oil theft.

For the month of June 2013,  N755.95 billion was shared by the three tiers of government.

A breakdown of the allocated amount, showed that N582.93 billion was shared under statutory allocation, N66.414 billion under Value Added Tax (VAT) envelope and the balance of N71.04 billion was shared from excess non-oil revenue.

The Minister of State for Finance, Ambassador Bashir Yuguda, who presided over the meeting, put the gross revenue received in June at N784.88 billion, which he said represents a decrease of N59.15 billion over the N844.03 billion received in  May.


– The Nation

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