FG, states, LGs share 1 billion dollars from Excess Crude Account

Finance Minister, Ngozi Okonjo-Iweala

The federal, states and local governments on Wednesday shared 1 billion dollars from the Excess Crude Account (ECA) “to execute some ongoing projects”, the Minister of State of Finance, Yerima Ngama said.

Mr. Ngama made this known to newsmen on Wednesday in Abuja at the end of the monthly Federation Accounts Allocation Committee (FAAC) meeting.

He also said the three tiers of government shared N27 billion from accumulated exchange gains saved from the surplus of the N155 per US dollar budgeted for the year 2012.

The minister said the withdrawals from the ECA were “for the development of the country”.
“State governments need the money to execute some of their projects,” he said, one month after he announced that the ECA had increased to 6.9 billion dollars from 5.8 billion dollars in June.
Mr. Ngama told newsmen that the 1 billion dollar withdrawal was because the ECA was close to “comfort level” of $10 billion threshold recommended by the National Economic Council (FEC) before the end of the year.
“If we had $6.9 billion half way (in July), it means that we are ahead of our target.
“This month we are crediting the excess crude account with N213.101 billion ($1.4 billion), and that will take us to almost $8 billion.
“This means that we are saving far more than we have planned to save and then we are now comfortable to distribute part of it to the three tiers of government.
This shows that we are putting very good financial management practice in place.
“This country can absorb any shock since our savings is exceeding the target level and I am assuring that before the end of the year we are going to hit the 10 billion mark given the level that we are saving,” he said.
Nigeria saves revenues above its benchmark oil price into the excess crude account.
The account dwindled from $20 billion in May 2007 to around $7 billion as at July 2012.
Earlier, the minister had announced that the Federal Government, the states and the local governments shared N574.40 billion from the Federation Account in July.
The amount distributed to the three tiers of government include N467.007 billion from the statutory allocation, N53.91 billion from Value Added Tax (VAT) and N35 billion from the Subsidy Reinvestment and Empowerment Fund Programme (SURE-P).
Also distributed was the N7.61 billion NNPC refund to states and local governments, and the 13 per cent derivation to oil producing states.
A breakdown of the figures showed that in the month of July, the gross revenue available from the VAT was N53.91 billion compared with N59.219 billion distributed the previous month.
The gross revenue of N825.396 billion received for the month of July was higher than the N763.553 billion received the previous month.
The minister attributed the increase to a rise in the quantity of crude oil exported in the month, lifting deposit payments and receipts of current and arrears of sales of NLNG.
He also announced that for the month of July, N60.276 billion was transferred to Non-oil Excess Revenue account after the distributable statutory revenue of N467.007 billion was shared among the three tiers of government.



Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD:"Warning to Men, These 3 Foods is Slowly Killing Your Erection". Click Here to Know Them

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.

  • concernednigerian

    The states should not be sharing again. These are the things that make those who suffer the effect of oil exploration to want to opt out of Nigeria. The states should generate resources to meet their needs. Oil revenue has made states especially in the South West and the far-North to be lazy. All that they contribute to Nigeria is noise-making and confusion. Ivory Coast depend on cocoa for export to generate wealth. What does the South West do to generate wealth apart from noise making and confusion? Northern Ghana engage in agriculture to generate wealth. What does the Far-North of Nigeria do to generate wealth apart from Boko Haram? The whole issue is embarrassing. Where is Bakare? Where is Fani-Kayode? Oh God Please release the Southern minority and the Middle-Belt from the scourge of the South West and the Far-North. Yet they are the first to describe the Jonathan Presidency as being clueless. How clued are they for being the caterpillars of the commonwealth? Their problem at present is to pick a fight over off-shore on-shore issue not how to generate revenue from internal sources.