Nigeria’s Excess Crude Account Crashes To $631m In 3 Weeks

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Controversy trailed revelation by the Federation Accounts Allocation Committee (FAAC) that the excess crude revenue account savings has been depleted to only $631 million within three weeks.

Barely three weeks ago, Minister of Finance, Zainab Ahmed, disclosed at the end of the committee’s meeting in Kaduna on November 25, 2018, that the balance in the account stood at about $2.319 billion.

It was not clear how about $1.688 billion, almost 73 percent, left the account in a space of three weeks.

However the federal government said it depleted the account to offset the last tranche of the Paris Club obligations to states. According to the Permanent Secretary of the Federal Ministry of Finance, Dr. Mahmoud Isa Dutse, who presided over the meeting, the federal government took the action to meet growings demanded by states. He said, “the balance in the ECA is $631 million.

The final payment for Paris club refund to states was made and the figure was deducted and that’s what accounts for the difference. “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 (FEC) and the president approved the money.”

 A total of N812.762 billion was distributed as Federal Allocation for the month of November 2018 between the Federal, States and Local Government Councils. It came from the Gross statutory revenue of N649.629 billion. This sum is lower than the N682.161 billion received in the previous month by N32.533 billion.as well as N92. 079 billion from Value Added Tax

Similarly Forex Equalisation of N70.000 billion and An Exchange Gain of N1.055 billion.contributed to the overall revenue for last month.

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.

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