Accruals to the Excess Crude Account has risen to about $9.5bn as at the end of October as N172.5bn was transferred to the account at the Federation Accounts Allocation Committee (FAAC), meeting held in Abuja, Tuesday.
Disclosing this to journalists at the end of the meeting which ended at about 11 pm, the Minister of State for Finance, Dr. Yerima Ngama, said increase in the ECA was due to higher revenues of government in the month under review.
The Excess Crude Accounts had risen to $8.4bn in September, up from the $8.03bn as at the end of August 2012 when the Committee transferred N1.24bn to the account. It would be recalled that the Federal Government through consensual agreement with other tiers of government set a $10bn 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 that the imperative of shoring up the ECA base in view of the debt crisis situation in the Euro zone, Asian and American economies.
The minister said: “The Excess Crude Account is supposed to serve as a buffer for the economy. Whenever available revenue is not up to the budgeted figure, government will augment for the health of the economy Meanwhile, the three tiers of government yesterday shared a total of N574.9bn in October from Statutory, Value Added, SUREP and refunds from the Nigeria National Petroleum Corporation (NNPC).
The amount was about N8.4bn higher than the sum distributed in the preceding month. The minister stated further that the gross revenue for month stood at N640.7bn, representing N46.07bn above the revenues that accrued to government coffers in September. The FAAC attributed the increase in revenue accruals to largely due to higher collection on Petroleum Profit Tax and improved earnings from Companies Income Tax.
By TOLA AKINMUTIMI.
Culled from Nigeriamasterweb