FG Withdraws N1.9trn From ECA To August Revenue Shortfall

R-L: Mrs. C.N. Nwokocha, Deputy Director Maritime Labour Department NIMASA, Mr. Peter Mgbemena representing the DG/CEO of NIMASA, Mr. Anthony Ogadi, Coordinator Eastern Zone of NIMASA and Mr. Charles Wame, MD Charkin Maritime & Offshore Training Centre at the celebration of the Day of the Seafarer organised by NIMASA in Calabar recently.

The Federal Government withdrew a total sum of N1.99trillion from the Excess Crude Account within the 2013 fiscal year, documents obtained from the Budget Office of the Federation (BOF) have revealed.
The BOF in its 2013 consolidated budget implementation report jointly signed by the Minister of Finance, Dr. Ngozi Okonjo-Iweala and the Director-General, BOF, Dr. Bright Okogu said the amount was used to settle various obligations of the Federal Government owing to its inability to meet revenue targets.
The withdrawals for 2013 are marginally lower than the N2.07trillion taken in the 2012 period by N800million or 3.86 per cent.
It said while N1.99trillion was the total outflows from the ECA, the government was able to ensure that within the 2013 period, the sum of N855.41million was transferred into the account.
However, the total inflow for 2013 was lower than the N2.30trillion received in 2012 by N1.29trillion or 56.19 per cent.
The report, a copy of which was obtained exclusively by our correspondent said, “The ECA was set up to serve as a stabilization and savings account. Inflows into the ECA in the fourth quarter of 2013 amounted to N156.03billion.
“The inflow into this account in the fourth quarter was lower than the N181.34billion and N474.8billion recorded in the third quarter of 2013 and fourth quarter of 2012 by N25.31billion and N318.77billion respectively.
“Similarly, the total inflow for 2013 was lower than the N2.30trillion received in 2012 by N1.297trillion (or 56.19 per cent).
“A total of N510.98billion was withdrawn from the account in the fourth quarter of 2013 to bring the cumulative drawdown from the account as at 31st December 2013 to N1.99trillion.
“The report said of the N1.99trillion withdrawn in 2013 from the ECA, the sum of N1.08trillion was used to augment statutory revenue to the three tiers of government, while N505billion was used to settle payment of petroleum product subsidy.
It added that the balance of N405.6billion was transferred into the special intervention fund.
Giving a breakdown of how the N1.08trillion revenue was augmented among the three tiers of government, the report said the sum of N485.02billion was withdrawn in the first quarter of 2013.
For the second, third and fourth quarters, the report put the augmentation made to the three tiers of government at N434.82billion, N12.02billion and N154.75billion in that order, respectively.
On how the payment for petroleum subsidy was made, it stated that N50billion was paid to oil marketers in the first quarter while second, third and fourth quarters had N110billion, N110billion and N235billion, respectively.
For transfers into the special intervention fund, the report said the sum of N71.1billion was moved into the account in the first quarter while N106.65billion, N106.65billion and N121.23billion were paid into the account in the second, third and fourth quarters in that order.
The nation experienced huge revenue shortfall within the 2013 fiscal year which saw the ECA experiencing massive withdrawals by the government in order to augment the depletion in revenue.
For instance, crude oil sales which accounts for about 90 per cent of government revenue recorded a decline of N1.43trillion of 33.69 per cent from N4.24trillion in 2012 to N2.81trillion in 2013.
Similarly, findings revealed that gas sales of N255.12billion and rent of N180million fell below their corresponding annual projections of N359.58billion and N880million by N104.46billion (29.05 per cent) and N0.70billion (or 79.67 per cent).
The drop in crude oil revenue, according to the BOF was due to massive crude oil theft, illegal bunkering pipeline vandalism which persisted during the period under review.
Similarly, the non oil revenue receipts recorded huge decline of N637.93billion (or 22.37 per cent) to N2.21trillion as at December 31, 2013, below the annual projected estimate of N2.85trillion.
For instance, Value Added Tax of N795.60billion, Company Income Tax of N985.52billion and Customs and Excise Duties of N432.64billion all fell short by N149.68billion (or 15.83 per cent), N6.52billion (or 0.66 per cent) and N360.31billion (or 45.44 per cent) when compared with their annual projections of N945.28billion, N992.04billion and N792.95billion.