Excess Crude Account hits $8.2bn

 

 

The Federation Account Allocation Committee on Friday transferred N124.09bn to the Excess Crude Account thereby bringing the new balance in the account to $8.027bn.

The Minister of State for Finance, Dr. Yerima Ngama said this shortly after the FAAC met in Abuja.

Ngama was represented at the meeting by the Accountant-General of the Federation, Mr. Jonah Otunla.

 

The transfer to the ECA came just as the gross revenue received in the month of August declined by N260.512bn.

 

Otunla said the drop from N825.396bn to N564.884bn recorded in July was caused by security challenges experienced by the Nigerian National Petroleum Corporation in crude oil production.

 

He said, “The gross revenue of N564.884bn received for the month of August was lower than the N825.396bn received in the previous month by N260.512bn.

 

“The drop in oil production was due to a number of factors among which are the security challenges faced by the NNPC, force majeure declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger pipeline as well as the decrease in Production Sharing Contract and Modified Carry Arrangement.”

 

On the NNPC indebtedness to the federation account, the AGF noted that the corporation had paid N7.617bn monthly for the past 13 months.

 

This, he noted, amounted to N99.021bn.

 

Meanwhile, the sum of N570.40bn was shared among the three tiers of government as allocation for August.

 

The total amount shared is made up of statutory distribution of N435.02bn and Value Added Tax (N60.437bn).

 

Similarly, N35.549bn for the Subsidy Reinvestment and Empowerment Programme, N7.617bn refund of debt owed FAAC by the NNPC and augmentation of N26.214bn for the month.

 

A breakdown of the N435.02bn statutory allocation showed that the Federal Government received N206.726bn or 52.68 per cent, states N104.854bn or 26.72 per cent, while the local governments got N80.838bn or 20.60 per cent.