Efforts by Federal Government to stabilise the
nation’s economy through fiscal and monetary measures are already achieving
some measure of results as the Excess Crude Account savings rose significantly
in August to $8.03 billion, a figure that represented over $1 billion in excess
of the level of savings in the Account last June.
This is even as the three
tiers of government shared N570.61 billion from gross revenue of N564.89
billion earned in the month under review from various revenue sources. The
excess in the amount shared over the gross revenue was met through the N26.21
billion used to augment the shortfall in accrued revenues to the Federation
Account during the month. A major feature of the income- expenditure profiles
of the Federation Account during the period under review was a sharp shortfall
in crude oil exports earnings which dropped from N825.39 billion in the
previous month by about N260.51 billion in August.
tiers of government shared N570.61 billion from gross revenue of N564.89
billion earned in the month under review from various revenue sources. The
excess in the amount shared over the gross revenue was met through the N26.21
billion used to augment the shortfall in accrued revenues to the Federation
Account during the month. A major feature of the income- expenditure profiles
of the Federation Account during the period under review was a sharp shortfall
in crude oil exports earnings which dropped from N825.39 billion in the
previous month by about N260.51 billion in August.
The decrease in revenues
was linked to decline in crude oil production occasioned by a dip in Production
Sharing Contract (PSC) and Modified Carry Arrangement (MCA) as well as a
declaration of Force Majure at Bonny Terminal and shutdown of Belema Gas Plant
and Trans Nigeria Pipeline. Briefing the media at the end of the month’s
Federation Accounts Allocation Committee (FAAC) meeting yesterday in Abuja,
Accountant General of the Federation, Jonah Otunla, said the build up in the
ECA was the result of fiscal retrenchment measures adopted by government at all
levels to boost savings.
was linked to decline in crude oil production occasioned by a dip in Production
Sharing Contract (PSC) and Modified Carry Arrangement (MCA) as well as a
declaration of Force Majure at Bonny Terminal and shutdown of Belema Gas Plant
and Trans Nigeria Pipeline. Briefing the media at the end of the month’s
Federation Accounts Allocation Committee (FAAC) meeting yesterday in Abuja,
Accountant General of the Federation, Jonah Otunla, said the build up in the
ECA was the result of fiscal retrenchment measures adopted by government at all
levels to boost savings.
He explained: “The gross
revenue of N564.884 billion received for the month was lower than the N825.396
billion received in the previous month by N260.512 billion.
revenue of N564.884 billion received for the month was lower than the N825.396
billion received in the previous month by N260.512 billion.
This was due to a
drop in crude oil production and lifting operations as a result of Force Majure
declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger
Pipeline as well as decrease in Production Sharing Contract (PSC) and Modified
Carry Arrangement. “The distributable statutory revenue for the month is
N440.792 billion.
drop in crude oil production and lifting operations as a result of Force Majure
declared at Bonny Terminal and shutdown of Balema Gas Plant and Trans Niger
Pipeline as well as decrease in Production Sharing Contract (PSC) and Modified
Carry Arrangement. “The distributable statutory revenue for the month is
N440.792 billion.
There is augmentation of
N26.214 billion as a result of the shortfall in revenue.
N26.214 billion as a result of the shortfall in revenue.
In addition, the sum
of N35 billion is proposed for distribution under the SURE-P programme. Also
distributed is the N7.617 billion refunded by NNPC. The total revenue
distributable for the current month (including VAT) is N527.743 billion. There
was exchange gain of N367.425 million,” Otunla stated. A further decomposition
of the revenue accruals on sectorial basis showed that both the minerals and
nonmineral sectors suffered serious decline with the mineral revenue ebbing by
about N194.63 billion to N451.85 billion from the N646.47 billion earned in
July.
of N35 billion is proposed for distribution under the SURE-P programme. Also
distributed is the N7.617 billion refunded by NNPC. The total revenue
distributable for the current month (including VAT) is N527.743 billion. There
was exchange gain of N367.425 million,” Otunla stated. A further decomposition
of the revenue accruals on sectorial basis showed that both the minerals and
nonmineral sectors suffered serious decline with the mineral revenue ebbing by
about N194.63 billion to N451.85 billion from the N646.47 billion earned in
July.
Similarly, the non-minerals
revenue component also recorded a shortfall of about N65.89 billion, dipping to
N113.04 billion in August from N178.92 billion in the preceding month. It would
be recalled that the Federal Government through consensual agreement with other
tiers of government set a $10 billion target for the ECA by the end of the year
as part of steps being taken to achieve a stronger financial system stability
and create a strong buffer for the economy in the face of the increasing
volatility of the international oil market and depressive signals from the
global economic environment. At the June FAAC meeting, the Minister of State
had stated the imperative of shoring up the ECA base in view of the ugly debt
crisis situation in the Euro zone, Asian and American economies.
revenue component also recorded a shortfall of about N65.89 billion, dipping to
N113.04 billion in August from N178.92 billion in the preceding month. It would
be recalled that the Federal Government through consensual agreement with other
tiers of government set a $10 billion target for the ECA by the end of the year
as part of steps being taken to achieve a stronger financial system stability
and create a strong buffer for the economy in the face of the increasing
volatility of the international oil market and depressive signals from the
global economic environment. At the June FAAC meeting, the Minister of State
had stated the imperative of shoring up the ECA base in view of the ugly debt
crisis situation in the Euro zone, Asian and American economies.
