Nigeria’s excess crude account drained by $1.6bn in one month, says finance ministry

The balance in the Excess Crude Account (ECA) significantly dropped from $2.45 billion at the end of November 2018 to just $631 million at the end of December, a period of one month.

Mahmoud Isa-Dutse, the permanent secretary of the ministry of finance, rationalized the steep drop to the withdrawal from the ECA, with presidential approval, to fund the payment of of the refund of the Paris Club refunds to the 36 states.

He made this known on Wednesday while briefing journalists on the outcome of the Federal Account Allocation Committee (FAAC) meeting.

The permanent secretary said $2.246 billion was withdrawn between October and December and shared to states as part of the Paris Club refund.

“The deductions was for the final payment of the Paris Club Refund. The final payments to states have been made and the figure was deducted from the Excess Crude Account,” he said, adding that the balance of the ECA is now $631 million.

“A decision was taken to make these refunds and part of that decision is for the refund to be funded from the Excess Crude Account.

“All the required approvals were obtained from the President and Federal Executive Council.”

According to Isa-Dutse, mineral revenue declined by N100.8 billion, from N522.6 billion recorded in October to N421.8 billion in November.

Also, the non-mineral revenue increased by N68.2 billion, from N159.4 billion to N227.7 billion while value-added tax (VAT) reduced from N100.9 billion in October to N88.3 billion in November.

“The gross statutory revenue of N649.6 billion received for the month was lower than the N682.1 billion received in the previous month by N32.5 billion,” he said.

“The revenue from the Companies Income Tax (CIT) increased significantly. However, revenue from Foreign Oil and Gas, Domestic Oil and Gas, Royalties, Petroleum Profit Tax, import and Excise duties and Value Added Tax decreased.”

According to the permanent secretary, all three tiers of government shared N812.76 billion as revenue for the month of November.

Isa-Dutse said in summary that the federal government received N280.9 billion; states N142.48 billion and N109.84 billion was received by the local governments.

According to him, N47.8 billion representing 13 percent of the mineral revenue was shared to oil-producing states.