Thursday, April 17, 2014

Excess Crude Account rises from increased crude sales

Published:

Minister of state for Finance Yerima Ngama

Nigeria earned more from crude sales in September.

 

 

Nigeria’s excess crude revenue account rose to about $8.4billion (about N1.3 trillion) from its previous balance last August, with the transfer of additional N140.7billion excess revenue earned from the export of the country’s oil in September.

The Minister of State for Finance, Yerima Ngama, said the government  has witnessed improved revenue earnings from crude oil exports in the past two months, a development he said has brought government  business back on track.

According to the minister, revenue earnings from cude oil exports recovered from the N451.9billion level it slumped to last August, with about N504.2billion realised in September. The September earning is about N120.313billion, more than the budgeted revenue of N383.909billion.

The Accountant General of the Federation, Jonas Otunla, attributed the increased revenue to a rise in crude oil production and export following the restoration of normal crude export activities. Normal activities were restored after completion of the repairs on the Qua Iboe and Forcado export terminals, shut down recently following the force majeur declared by oil companies.

The improved reveneu situation was also due to an increase in the price of crude oil at the international market.

“We are happy to be getting back on track with improved revenue yields,” Mr. Ngama told reporters at the end of the Federation Accounts Allocation Committee, FAAC, meeting in Abuja on Friday. “For the first time since 2010, the meeting is beginning to hold on schedule. We are happy because, government is going to have enough money to execute its programmes as well as pay the salaries of civil servants on time.”

He however denied knowledge of any agreement between the Federal Government and the governors of the 36 states to settle out of court the issue controversial issue of sharing money in the ECA. Disagreements on the sharing formula for the ECA revenue made the governors to decide to approach the Supreme Court for a resolution.

Total gross revenue available for distribution, according to the AGF, was about N594.7billion, which is about N29.8billion more than the N564.9billion collected in August.

Details of the revenue showed that oil mineral revenue for the month amounted to about  N504.2billion, about N120.313billion, more than the budgeted target revenue of N383.909billion. The amount also exceeded by N52.376billion, the N451.846billion collected in the preveious month.

Non-oil  revenue for the corresponding period stood at N90.5billion, which is about N28.2billion lower than the N118.7billion proposed in the 2012 budget. The amount is also lower than the N113.04billion figure collected in the previous month by about N22.6billion.

Mr. Ngama gave distributable statutory revenue for the month as N454billion, excluding N13.01billion provision for augmentation as a result of the shortfall in the amount proposed in the 2012 fiscal appropriation.

The Federal Government’s share of the allocation was N211.74billion, which is higher by about N5.016billion than the N206.73billion received in August, though lower by N4.7billion than the N216.5billion proposed in the year’s budget.

The 36 states were allocated a total of N107.4billion, about N2.4billion lower than N109.8billion proposd in the budget, though marginally higher than the N104.9billion allocation last August. The 774 local governemnt councils took home about N82.8billion, while the nine oil producing states received about N47.3billion as 13 per cent oil derivation payment.

In addition, about N35.6billion was approved for the SURE-P programme, apart from about N7.62billion refund by the NNPC as part of the N450billion debt owed the federation account for unauthorised deductions from revenue that should been paid to the government from its operations since 2003.

The collection for value added tax, VAT, was N60.44billion, which was lower than about N64.23billion proposed in the budget. The amount was below the N53.9billion collected in August by N6.53billion.

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