- In an effort to resolve the problem of managing the Excess Crude Account (ECA), the Federation Account Allocation Committee (FAAC) has set up a committee
- The committee is to be under the chairmanship of the Delta state commissioner of finance, David Edevbie
- Kemi Adeosun, the finance minister, confirming the development to newmen in Abuja, said that the committee has about one month to submit its report
The federal government, through the Federation Account Allocation Committee (FAAC) on Thursday, August 30, set up a committee to come up with guidelines for the effective management of the Excess Crude Account (ECA).
The committee under the chairmanship of the Delta state commissioner of finance, David Edevbie, was given about one month to submit its report, Punch reports.
Kemi Adeosun, the finance minister, confirmed the development in her speech to newsmen. She also said the committee that was set up to carry out a thorough review of the reporting template of the Nigerian National Petroleum Corporation (NNPC) would submit its draft report to the committee in September, 2018.
She said that the committee was charged with the responsibility of producing rules that would guide the credit of funds into the account.
Recently, the management of the ECA had been a subject of top concern between the federal and state governments.
For instance, the withdrawal of about $Ibn and another $496m from the ECA by President Muhammadu Buhari without the constitutionally required legislative appropriation triggered reactions from some states especially those governed by opposition parties.
The funds were used to intensify the fight against Boko Haram and acquire military aircraft from the United States (US).
Adeosun said: “The other matter discussed was progress on the new template that is being developed with the NNPC and the federation account and we are optimistic that we will have a draft before the next meeting.
“A committee has also been set up under the chairmanship of the Commissioner for Finance in Delta State to come up with rules surrounding the excess crude to ensure that we have a rules-based credit into the Excess Crude Account. They also intend to report back in the next meeting.”
On the allocation to the three tiers of government, Adeosun said the sum of N714.8bn was allocated as statutory allocation for the month of July, 2018.
Out of this amount, she said the federal government got N298.28 billion, states N183.77 billion while the local governments would share a total of N138.96 billion.
In addition, she said the sum of N49.77 billion was shared to the oil producing states based on the 13% derivation principle while the revenue generating agencies’ revenues would get the sum of N44 billion as cost of revenue collections.
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She said that the balance in the ECA is $2.33 billion. According to a communique issued shortly after the meeting, the sum of N597.97 billion was generated as statutory revenue for the month of July. The statement said that this was lower by N96.69 billion than the N694.67 billion revenue received in June, 2018.
Meanwhile, Legit.ng reported that Ahmed Idris, the accountant-general of the federation, had revealed that the balance in Excess Crude Account (ECA) as at Monday, April 23, is $1.8 billion.
Idris disclosed this on Thursday, April 26, at the recent National Economic Council (NEC) meeting presided over by Yemi Osinbajo.
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