Economy
Nigeria’s Excess Crude Account Remains Static, FAAC Revenue Rises 9.8%
By Aduragbemi Omiyale
The balance in Nigeria’s excess crude account (ECA), as of January 17, 2023, stood at $473,754.57, the same amount in the purse as of December 15, 2022, according to an analysis by Business Post.
This was confirmed in a statement issued by the director of information and press at the Ministry of Finance, Mr Phil Abiamuwe-Mowete.
The ECA is an account created to save the extra funds made anytime the country sells crude oil higher than the approved benchmark in the budget. For example, if the crude oil benchmark is $70 per barrel and the commodity sells for $75 per barrel, the excess $5 is saved for rainy days.
In the 2022 budget, the benchmark was $70 per barrel, and in the 2023 appropriation bill, it was raised by the National Assembly to $75 per barrel. Yesterday, the price of Brent crude, which Nigeria’s crude is graded, was sold at $82.84 per barrel in the international market, indicating that Nigeria made an extra $7.84 per barrel.
In the statement, it was disclosed that the distributed revenue generated by the country in December 2022 increased by 9.8 per cent to N990.2 billion from the N902.1 billion recorded in November 2022.
The increase was buoyed by an improvement in revenues from Petroleum Profit Tax (PPT), Companies’ Income Tax (CIT) and VAT, offsetting the decline in import duty.
The N990.2 billion shared last month comprised statutory revenue of N707.756 billion, VAT of N233.277 billion, Exchange Gain of N24.841 billion, and N24.315 billion Electronic Money Transfer Levies (EMTL).
This was disclosed at the meeting of the Federation Account Allocation Committee (FAAC) in Abuja, attended by the Commissioners of Finance of the states of the federation.
The money, which was shared by the three tiers of government, was inclusive of Gross Statutory Revenue, Value Added Tax (VAT), Exchange Gain and Electronic Money Transfer Levies (EMTL).
From the amount, the federal government received N375.306 billion, the states received N299.557 billion, the local government councils got N221.807 billion, and the oil-producing states received N93.519 billion as 13 per cent derivation of mineral revenue.
According to a communiqué issued after the gathering, the gross revenue available from VAT was N250.512 billion, which was an increase distributed in the preceding month, with N7.215 billion allocated to the NEDC project, N10.020 billion given the Federal Inland Revenue Service (FIRS) as cost of collection, and the balance of N233.277 billion given to the Nigeria Customs Service (NCS).
From the VAT earnings, the central government received N34.992 billion, the states received N116.639 billion, and the councils got N81.647 billion.
In the month, the country earned N1.1 trillion as Gross Statutory Revenue, with N31.531 billion removed as cost of collection and N396.896 billion to transfers, savings and refunds, and the balance of N707.756 billion distributed among the tiers of the government.
The federal government took N325.105 billion, states went with N165.897 billion, LGCs got N127.129 billion, and oil-producing states received N90.625 billion.
Also, the sum of N24.315 billion from EMTL was distributed last month, with the national government taking N3.648 billion, states receiving N12.157 billion, and the local councils getting N8.510 billion.
The communiqué further disclosed that N24.841 billion from Exchange Gain was shared, with the federal government receiving N11.562 billion. The states got N5.864 billion, local government councils received N4.521 billion, and oil-producing states had N2.894 billion.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.24 per cent on Friday, April 25 after the duo of FrieslandCampina Wamco Nigeria Plc and Afriland Properties Plc landed on the losers’ table.
FrieslandCampina Wamco Nigeria Plc depreciated by N2.58 to sell at N35.37 per unit compared with the previous day’s N37.95 per unit, and Afriland Properties Plc lost 2 Kobo to close at N17.78 per share versus Thursday’s closing value of N17.80 per share.
However, Geo-Fluids Plc appreciated by 10 Kobo during the trading day to sell for N1.80 per unit, in contrast to the preceding session’s N1.70 per unit. The rise in the price of the stock could not prevent the fall of the bourse yesterday.
Consequently, the market capitalisation of the trading platform went down by N4.64 billion to N1.914 trillion from N1.918 trillion and the NASD Unlisted Security Index (NSI) declined by 7.92 points to 3,269.06 points from 3,276.98 points.
The final trading session of the week ended with a surge of 1,695.8 per cent in the volume of securities transacted to 3.7 billion units from the 206.2 milion units transacted in the previous trading day.
Equally, the value of transactions jumped by 2,592.6 per cent to N9.5 billion from N354.1 million on Thursday, and the number of deals decreased by 47.4 per cent to 20 deals from the 38 deals recorded a day earlier.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units sold for N520.9 million, followed by Geo-Fluids Plc with 259.3 million units worth N456.1 million, and Okitipupa Plc with 153.6 million units valued at N4.9 billion.
Also, Okitipupa Plc remained the most active stock by value on a year-to-date basis with 153.6 million units valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 15.6 million units worth N598.5 million, and Impresit Bakolori Plc with 533.9 million units sold for N520.9 million.
By Dipo Olowookere
A 0.30 per cent fall was recorded by the Nigerian Exchange (NGX) Limited on Friday as a result of profit-taking in the industrial goods sector.
This was mainly caused by sell-offs in Dangote Cement Plc, which released its financial statements for the first quarter of 2025 yesterday.
The cement maker lost 10.00 per cent during the session to trade at N432.00, Regency Alliance lost 8.06 per cent to close at 57 Kobo, VFD Group depreciated by 7.57 per cent to N17.10, Chams declined by 7.27 per cent to N2.04, and Sovereign Trust Insurance crashed by 6.12 per cent to 92 Kobo.
Conversely, International Breweries, Legend Internet, and Ikeja Hotel gained 10.00 per cent each to sell for N7.70, N6.82, and N12.10 apiece, Vitafoam Nigeria surged by 9.93 per cent to N44.85, and Eterna rose by 9.92 per cent to N39.90.
The industrial goods index was down by 4.73 per cent on Friday, as the others finished in green territory.
The consumer goods space rose by 2.21 per cent, the banking sector appreciated by 1.55 per cent, the insurance counter expanded by 1.50 per cent, the energy sector increased by 0.07 per cent, and the commodity industry went up by 0.04 per cent.
At the close of transactions, the All-Share Index (ASI) went down by 321.21 points to 105,753.05 points from 106,074.26 points and the market capitalisation shrank by N202 billion to N66.465 trillion from N66.667 trillion.
The level of activity increased yesterday as the trading volume, value, and number of deals grew by 30.40 per cent, 94.23 per cent, and 17.64 per cent, respectively.
This was because investors transacted 428.1 million shares worth N20.2 billion in 14,284 deals compared with the 328.3 million shares valued at N10.4 billion in traded in 12,142 deals a day earlier.
GTCO led the activity chart with 60.7 million equities sold for N3.8 billion, Fidelity Bank traded 41.4 million stocks worth N829.3 million, Access Holdings exchanged 40.6 million shares valued at N968.3 million, MTN Nigeria sold 33.0 million equities for N8.2 billion, and Zenith Bank transacted 22.9 million stocks worth N1.1 billion.
By Adedapo Adesanya
The Naira extended its gains against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 25 by 0.22 per cent or N3.59 to sell for N1,599.42/$1 compared with the N1,603.01/$1 it was traded in the previous session.
The Nigerian currency also improved its value against the Euro in the official market by N1.36 to close at N1,818.53/€1 compared with Thursday’s closing price of N1,819.89/€1.
However, the domestic currency depreciated against the Pound Sterling in the same market segment yesterday by N1.90 to wrap the session at N2,130.44/£1 versus the preceding session’s rate of N2,128.50/£1.
At the black market segment, the Naira appreciated against the greenback on Friday by N2 to quote at N1,605/$1, in contrast to the previous day’s value of N1,607/$1.
In the cryptocurrency market, a possible regulatory progress about digital assets in the US spurred buying interest among investors during the trading session.
The chairman of the US Securities and Exchange Commission, Mr Paul Atkins, was at a crypto roundtable on Friday and he devoted his inaugural speech to assuring the industry that he will continue to remake securities policy to favor digital assets innovation.
Litecoin (LTC) rose by 3.0 per cent to $87.24, Dogecoin (DOGE) grew by 2.7 per cent to $0.1862, Bitcoin (BTC) increased by 1.3 per cent to $94,687.84, Ethereum (ETH) jumped by 1.2 per cent to $1,797.51, Cardano (ADA) improved by 0.9 per cent to $0.7235, and Ripple (XRP) gained 0.6 per cent to close at $2.20.
On the flip side, Solana (SOL) depreciated by 0.9 per cent to $151.64, and Binance Coin (BNB) lost 0.8 per cent to sell for $602.89, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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