Good times may just be here for beneficiaries of the federation account as there was relative increase in the distributable revenue for the month of June shared in July despite continuous drop in global oil prices.
Exclusive documents available to Economic Confidential revealed that a total of N630,980,677,904.33 was shared in July for the month of June made up of statutory revenue of N461,464,652,070.27 and value added tax (VAT) of N64,992,146,420.88 shared among both local, states, Federal government and some agencies.
Surprisingly, while the drop in the global benchmark Brent crude has hit a four-month low of $53.33 per barrel, threatening the expected accretion to Nigeria’s Excess Crude Account (ECA) this year, transparent management of the federation account also ensured that monies were transferred into the two excess crude accounts.
The steep decline in oil prices had forced the National Assembly to settle for $53 per barrel as the oil benchmark price for this year’s budget, down from $65 proposed by the executive, which had to adjust it twice, from $78 to $73, and later to $65. The ECA, into which the country saves the difference between the market price of oil and the budget benchmark to provide a cushion when prices fall or extra cash is needed for spending on infrastructure, was rapidly depleted in the fourth quarter of last year as oil revenues plunged.
Addressing newsmen after the FAAC meeting, the Permanent Secretary of the Federal Ministry of Finance who served in the capacity of the Committee’s chairperson in absence of a minister in the ministry, Mrs. Anastasia Daniel-Nwaobia revealed that, “as of 24th July, 2015 the balance in Excess Crude Account (ECA), stands at $2.207 billion.’’
Federal Inland Revenue Service (FIRS) collected N6,123,110,216.68; Nigeria Customs Service (NCS)- N3,128,497,297.61; Department of Petroleum Resources- N2,528,498,749.56 while the mineral producing states got N34,103,847,295.54.
The Federal Government received a total of N216, 820,937,391billion.
As usual, Akwa Ibom State and its councils received the highest allocation in that category with N19.010.252 billion compared to the N13.382.722billion it got in the preceding month of May. Lagos State upstaged Delta State in second position as it got N14.468.154billion.
Rivers State, which received N8.989, 214billion in the month of May got a massive increased sum of N12.615, 204billion for June. The same goes for Delta State with a total amount of N12.432.149billion which is a little more than the N11.635, 046billion it got the previous month. Kano also managed a double figure of N11, 800,425billion while Bayelsa state received N8.884, 274billion.
On the other end of the table, Gombe is second from the bottom with N4.370, 019billion but it is an improvement from the N2.978, 842billion it received in May. Rooted to the bottom is Ebonyi state that received N4.308, 763billion while Ekiti state got a total of N4.508, 708billion to stay third from the bottom.