2 years after, FAAC adds N24.5bn to Excess Crude Account

…Shares N701bn to FG, States, LGAs for April
The Federation Account Allocation Committee (FAAC) has added N24.5billion to the Excess Crude Account (ECA) after two years of non-remittance to the ECA despite steady increase in the price of oil sales over the year and its all time high of $80 per barrel since November 2014.

The FAAC also shared N701.022 billion to the three tiers of government for the month of April in line with the constitutional sharing formulae of 52.68 percent for the Federal Government, state governments – 26.72 percent while 20.60 percent is for the local government areas.

The Chairman of FAAC and Minister of Finance, Mrs. Kemi Adeosun, represented by the Permanent Secretary, Dr. Mahmoud Isa Dutse, on Wednesday, said that the gross revenue of N613.057 billion received for the month was higher than the N480.599 billion received in the previous month by N132 132.458 billion.

Giving the breakdown, the Federal Government received N289.045 billion, state governments – N181.963 and local governments – N137.326billion, VAT included.

Crude oil export sales volume increased by 64 percent when compared with the 7.72 million barrels from the previous month, resulting in increased revenue from federation crude oil exports sales by $226.90 million.

The oil producing states also got N49.756 billion as 13 percent derivative of oil mineral revenue.

Federal Inland Revenue Service (FIRS) received N5.715 billion as its 4 percent cost of collection, Nigeria Customs Service got N4.092 billion as its 7 percent cost of collection while the Department of Petroleum Resources got N4.061 billion as its 4 percent cost of revenue collection for the month of April, 2018.

Also, the average crude oil price increased from $65.72 to $66.78 per barrel.

The performance for the month in review would have been better but for few production shut-ins and shut-downs at various terminals for repairs of leaks and maintenance.

There were significant increases in revenues from Companies Income Tax (CIT), Petroleum Profit Tax and oil royalty. Import duty and Value Added Tax (VAT) recorded marginal increases.

The distributable statutory revenue for the month was N613.057 billion while the total distributable for the current month including VAT was N701.022 billion.

Duste also disclosed that there was an additional sum of N11.269 billion received from NNPC after April FAAC and it was distributed accordingly.

The Excess Crude Account balance as at May 2018 stood at $1.911 billion while the Petroleum Profit Tax also stood at $0.133 million.

Chairman, Finance Commissioners Forum and Adamawa State Commissioner for Finance, Mr. Mahmood Sale Yunusa, said that the revenue shared was far from “where we should be.”

Yunusa said that the FAAc is aimed at a distributable revenue of N1 trillion monthly to the three tiers of government.