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 duo of MRS Oil and FrieslandCampina Wamco Nigeria Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 0.68 per cent on Friday, June 5.
MRS Plc lost N19.00 during the session to sell at N171.00 per share compared with Thursday’s value of N190.00 per share, and FrieslandCampina Wamco Nigeria Plc depreciated by N8.70 to finish at N181.68 per unit compared with the preceding session’s N190.38 per unit.
As a result, the market capitalisation further lost N22.59 billion to close at N2.607 trillion versus the N2.630 trillion it ended a day earlier, and the NASD Unlisted Security Index (NSI) dropped 37.76 points to settle at 4,358.32 points, in contrast to the previous day’s 4,396.08 points.
The alternative stock market closed the last trading day of this week with a price gainer, Central Securities Clearing System (CSCS) Plc, which gained 6 Kobo to quote at N78.40 per share compared with the preceding session’s N78.34 per share. However, it could not prevent the market from going down at the close of business.
Yesterday, the volume of securities bought and sold by investors went down by 50.0 per cent to 140,345 units from the preceding day’s 280,714 units, the value of stocks decreased by 16.5 per cent to N17.9 million from the previous session’s N21.5 million, and the number of deals carried out by market participants fell by 35.7 per cent to 27 deals from the 42 deals recorded on Thursday.
When trading activities closed for the day, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and CSCS Plc with 64.7 million units traded for N4.4 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units transacted for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
By Dipo Olowookere
Renewed interest in financial stocks and others lifted the Nigerian Exchange (NGX) Limited by 0.15 per cent on Friday.
Customs Street closed higher yesterday despite the 1.37 per cent loss recorded by the consumer goods sector as a result of profit-taking.
This was offset by gains in the other key sectors of the local bourse, as the insurance counter chalked up 1,14 per cent. The banking space appreciated by 0.90 per cent, the industrial goods segment grew by 0.46 per cent, and the energy sector expanded by 0.01 per cent.
Consequently, the All-Share Index (ASI) went up by 366.00 points to 242,593.31 points from 242,227.31 points, and the market capitalisation gained N235 billion to close at N155.594 trillion compared with the previous day’s N155.359 trillion.
The trio of International Energy Insurance, Abbey Mortgage Bank, and DAAR Communications improved by 10.00 per cent each yesterday to N7.26, N9.35, and N1.98, respectively, while Zichis advanced by 9.39 per cent to N32.38, with Sovereign Trust Insurance up by 8.70 per cent to N2.50.
On the flip side, Academy Press lost 9.84 per cent to quote at N8.25, University Press depreciated by 9.73 per cent to N5.10, Africa Prudential dipped by 2.63 per cent to N12.95, Chams crumbled by 2.44 per cent to N4.00, and International Breweries slipped by 1.59 per cent to N12.35.
Business Post reports that the market breadth index was positive during the session after recording 37 appreciating equities and 14 depreciating equities, implying strong investor sentiment.
Abbey Mortgage Bank led the activity chart with a turnover of 164.1 million units worth N1.5 billion, Ellah Lakes sold 76.7 million units for N767.2 million, Access Holdings transacted 44.8 million units valued at N1.1 billion, Linkage Assurance exchanged 23.0 million units worth N41.2 million, and The Initiates traded 20.2 million units for N562.1 million.
At the close of trades, market participants transacted 608.5 million units worth N32.0 billion in 53,826 deals versus the 588.5 million units valued at N27.9 billion executed in 57,352 deals in the previous session. This showed that the number of deals eased by 6.15 per cent, the volume of transactions rose by 3.40 per cent, and the value of transactions soared by 14.70 per cent.
By Adedapo Adesanya
The Naira further depreciated against the United States Dollar by N3.46 or 0.25 per cent to N1,362.21/$1 from N1,358.75/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 5.
However, it appreciated against the Pound Sterling in the same market window during the session by N4.47 to trade at N1,823.59/£1 compared with the previous day’s N1,828.06/£1, and gained N7.00 against the Euro to sell at N1,574.58/€1, in contrast to Thursday’s closing price of N1,581.58/€1.
For another trading session, the Nigerian Naira maintained stability against the Dollar in the parallel market and the GTBank forex counter on Friday at N1,375/$1 and N1,372/$1, respectively.
The Naira is expected to remain strong in the near term, backed by a rise in external reserves, which are nearing $50 billion, enhancing analysts’ confidence about its outlook in the second half of 2026.
Heightened global uncertainty has reduced the incentive for importers and corporates to demand FX, as cautious trade weighs on import needs. Analysts estimate a $40 billion net FX position for the year, a projection anchored in oil windfall gains.
As for the cryptocurrency market, prices remained depressed following a strong US jobs report that spurred markets to price in higher-for-longer interest rates, sending Treasury yields and the dollar up while hammering stocks, especially AI-related names. Crypto markets saw heavy leverage washouts with about $1.6 billion in positions liquidated over 24 hours.
Ethereum (ETH) gave up 4.9 per cent to trade at $1,584.68, Solana (SOL) fell by 3.3 per cent to $63.22, Bitcoin (BTC) crashed by 1.9 per cent to $61,333.23, Dogecoin (DOGE) slipped by 1.8 per cent to $0.0821, and Ripple (XRP) moderated by 1.8 per cent to $1.09.
Further, TRON (TRX) dropped 1.6 per cent to sell at $0.3197, Binance Coin (BNB) slumped by 1.0 per cent to $581.18, and Cardano (ADA) declined by 0.4 per cent to $0.1589, while the US Dollar Tether (USDT) gained 0.07 to sell at $0.9997, and US Dollar Coin (USDC) closed flat at $0.9998.
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