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Economy

ECA shrinks from $35million to $376,655

The Federal Government has drawn down the Excess Crude Account  (ECA) to $376,655.09 from $35.377 million in May, this year.

This means that in one month the government withdrew $35,000,344.91from the ECA.

The ECA is supposed to be a savings buffer meant to steady the government’s revenue and serve as a bailout for the economy in dire times.

The information about the ECA’s draw-down is contained in the abridged version of the Federation Account Allocation Committee (FAAC) Communique released by the  Director in charge of Information in the Office of the Accountant General of the Federation (OAGF),  Henshaw Ogubike, at the end of the monthly FAAC meeting in Abuja, yesterday.

However, the detailed communique shows that a total of N1.012 trillion was realised as revenue last month, but only N802. 407 was  shared after some deductions.
In the communique, it was stated that N26.117 billion was withdrawn from the ECA as “Derivation Refund on withdrawals from ECA.

Another N280 billion was withdrawn from the account as “Savings  and Refund of 20 per cent  of amount due to states from withdrawals from the ECA  from 2009-2015.

Also,  N1.050 trillion was budgeted for last month as Net Statutory Allocation but was left after the deductions was N644,960 billion.

N18.163 billion was deducted from the N1.012 trillion as “13 per cent refund on subsidy, priority projects and Police Trust Fund (1999 to December 2021).

Other deductions were 13 percent refund on subsidy and priority projects (2022); and 13 percent derivation for Anambra State.

The Federal Inland Revenue Service (FIRS) received its statutory monthly four per cent cost of collection of N452.318 billion, while the Nigeria Customs Service received its seven per cent cost of collection of N150.622 billion for June.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), also received N191.066 billion as its statutory four per cent cost of collection for the month. There was an additional refund of a N100 million to the FIRS captured as “refund on cost of collection.

At the end of the FAAC meeting for June, N802.407 billion was distributed among the three tiers of government.

The N802.407 billion total distributable revenue comprised of distributable statutory revenue of N608.580 billion and  distributable Value Added Tax (VAT) revenue of N193.827 billion.

The communiqué stated that “the balance in the Excess Crude Account (ECA) was $376,655.09”.

From the total distributable revenue of N802.407 billion; the Federal Government received N321.859 billion, the states received N245.418 billion and the Local Government Councils got N182.330 billion. The sum of N52.799 billion was shared to the relevant states as 13 per cent derivation fund.

Gross statutory revenue of N1,012.065 trillion was received for the month of June 2022. This was higher than the  N589.952 billion received in the previous month by N422.113 billion.

From the  N608.580 billion distributable statutory revenue, the Federal Government received N292.785 billion, the states received N148.505 billion, while the Local Government Councils received N114.491 billion.

 

 

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