Nigeria’s ECA Shrinks From $35m To $376,655

The Federal Government has drawn down the Excess Crude Account (ECA) to $376,655.09 from $35.377 million in May, this year.

This means that in one month the government withdrew $35,000,344.91from the ECA.

The ECA is supposed to be a savings buffer meant to steady the government’s revenue and serve as a bailout for the economy in dire times.

The information about the ECA’s draw-down is contained in the abridged version of the Federation Account Allocation Committee (FAAC) Communique released by the Director in charge of Information in the Office of the Accountant General of the Federation (OAGF), Henshaw Ogubike, at the end of the monthly FAAC meeting in Abuja, yesterday.

However, the detailed communique shows that a total of N1.012 trillion was realised as revenue last month, but only N802. 407 was shared after some deductions.

In the communique, it was stated that N26.117 billion was withdrawn from the ECA as “Derivation Refund on withdrawals from ECA.

Another N280 billion was withdrawn from the account as “Savings and Refund of 20 per cent of amount due to states from withdrawals from the ECA from 2009-2015.

Also, N1.050 trillion was budgeted for last month as Net Statutory Allocation but was left after the deductions was N644,960 billion.

N18.163 billion was deducted from the N1.012 trillion as “13 per cent refund on subsidy, priority projects and Police Trust Fund (1999 to December 2021).

Other deductions were 13 percent refund on subsidy and priority projects (2022); and 13 percent derivation for Anambra State.

Read Also: FG, States Share N802bn As FAAC Allocation Rises By 18%

The Federal Inland Revenue Service (FIRS) received its statutory monthly four per cent cost of collection of N452.318 billion, while the Nigeria Customs Service received its seven per cent cost of collection of N150.622 billion for June.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), also received N191.066 billion as its statutory four per cent cost of collection for the month. There was an additional refund of a N100 million to the FIRS captured as “refund on cost of collection.

At the end of the FAAC meeting for June, N802.407 billion was distributed among the three tiers of government.