Shocker: FG withdraws $1.68bn from Excess Crude Account in 3 weeks

Posted by Uche Usim, Abuja | 20 December 2018 | 1,150 times

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•Finance Minister Zainab Ahmed

The Federal Account Allocation Committee (FAAC) rose from its last meeting in 2018 with a startling disclosure that the Excess Crude Account (ECA) crashed from $2.319 billion to $631 million between November 25 and December 19, meaning $1.68 billion (72.7%) was withdrawn from the account within three weeks.

This is as the three tiers of government shared N812.763 billion in December from revenue generated in November. The figure includes cost of collection to the Nigeria Customs Service, the Department of Petroleum Resources and the Federal Inland Revenue Service.

Briefing journalists after the FAAC meeting, the Permanent Secretary, Ministry of Finance, Dr Mahmoud Isa Dutse explained that that reduction in ECA to $631 million was as a result of the final payment for Paris club refund to states.

“After that was made and the figure was deducted and that’s what accounted for the difference. And it was right to deduct massively from the ECA without appropriation, he said.

“A decision was taken to make this refund and part of that decision is that the refund should be funded from the ECA. Federal Executive Council, the President approved the money.”

Corroborating, the Accountant-General of the Federation, Ahmed Idris said FAAC did the right thing and followed due process.

“You can go and find out from the National Assembly if due process was followed or not,” Ahmed said.

From the N812 billion shared in December, the Federal Government got N326.754 billion, States got N203.206 billion, while Local Government Areas shared N153.528 billion.

The 13 percent derivation for oil producing states stood at N57.087 billion, while cost of collection and transfers to revenue generating agencies was N72.187 billion.

The Gross statutory revenue received in December was N649.629 billion. The sum is lower than the N682.161 billion received in the previous month by N32.533 billion.

Breakdown of the total distributable revenue of N812.762 billion, comprised the Statutory Revenue of N649.629billion, Gross Value Added Tax of N92.079billion, Forex Equalisation of N70.000 billion and An Exchange Gain of N1.055 billion.

Therefore, from the Gross statutory revenue, Federal Government received N280.913 billion representing 52.68%; States received N142.483 billion representing 26.72%; Local Government Councils received N109.848 billion representing 20.60%; while the Oil Producing States received N47.882 billion also representing 13% derivation revenue.

Furthermore, the breakdown of distribution to the 3 tiers from Value Added Tax (VAT), include: Federal Government received N13.259 billion representing 15%; States received N44.198 billion representing 50% while the Local Government Councils received N30.938 billion, also representing 35%.

Meanwhile, the Communique added that the revenue from the Company Income Tax( CIT) increased significantly while revenues from Value Added Tax (VAT), Import Duty, Petroleum Profit Tax (PPT) and Foreign Oil and Gas, Domestic Oil and Gas Royalties all decreased.

Sourced from a Daily Sun report

Source: News Express

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