Nigeria’s Excess Crude Account crashes to $631 million

About $1.68 billion was drawn down from the Excess Crude Account (ECA) in the last one month, leaving a balance of $631 million as at 19th December, 2018.

This came to the fore at Wednesday’s Federation Accounts Allocation Committee (FAAC) meeting in Abuja.

The federal government said it depleted the account to off-set 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 demanda 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 ₦812.762 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 ₦682.161 billion received in the previous month by ₦32.533 well as ₦92. 079 billion from Value Added Tax

Similarly Forex Equalisation of ₦70.000 billion and An Exchange Gain of ₦1.055 billion.contributed to the over all revenue for last month.

From the Gross statutory revenue, Federal Government received ₦280.913 billion representing 52.68%; States received ₦142.483 billion representing 26.72%; Local Government Councils received ₦109.848 billion representing 20.60%; while the Oil Producing States received ₦47.882 billion also representing 13% derivation revenue.