Others • Created March 12, 2010 23:54

FG drains excess crude account, left with $3.2bn

Last month, the Acting President asked Federal, States and Local governments to share $2 billion from the earlier balance of $6.2 billion. Governor of Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi told our reporter that using the excess crude funds at this particular time is in order, saying it will not fuel inflation. “At […]

FG drains excess crude account, left with $3.2bn
FG drains excess crude account, left with $3.2bn

Last month, the Acting President asked Federal, States and Local governments to share $2 billion from the earlier balance of $6.2 billion. Governor of Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi told our reporter that using the excess crude funds at this particular time is in order, saying it will not fuel inflation.
“At this particular time, the federal government actually needs to use the funds. This is something that CBN has no objection to. What needs be done is to fast track deregulation and ensure sufficient supply of petroleum products and unlock distribution bottleneck”, he said.
Accounts of the three tiers of government will be credited before the 16th of this month. The excess crude account has a balance of $20 billion as at January 2009. The revenue shared yesterday by the three tiers of government for the month February was N56.47 billion lower than what was distributed in January. They shared N273.23 billion in February as against N329.7 billion shared in the previous month.
“The decrease was attributable to drastic decline in collection from Production Sharing Contract and Modified Carry Arrangement”, the Accountant-General of the Federation Ibrahim Hassan Dankwambo said in a communiqué. The amount shared was made up of statutory revenue of N228.659 billion and Value Added Tax of N44.480 billion.
From the statutory revenue, federal government got N108.756 billion, states N55.163 billion, local governments N42.528 billion, while N22.212 billion was meant for the mineral producing states, as 13 percent derivation. From VAT distributions, federal government received N6.687 billion, states N22.290 billion and local government N15.603 billion.

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