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
Central Securities Clearing System (CSCS) Plc kept the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.04 per cent on Friday, July 16.
The securities depository company added N2.50 to its share price to settle at N95.14 per unit from the preceding session’s N92.64 per unit.
However, FrieslandCampina Wamco Nigeria Plc slid during the session by N5.85 to N141.81 per share from N147.66 per share.
But when the bourse closed for the day, the market capitalisation increased by N1.08 billion to N2.593 trillion from N2.592 trillion, while the NASD Security Index (NSI) appreciated by 1.80 points to 4,320.67 points from 4,318.87 points.
During the session, the value of securities slid by 38.9 per cent to N63.5 million from N104.1 million, the volume of securities went down by 34.5 per cent to 1.2 million units from 4.8 million units, and the number of deals declined by 15.4 per cent to 33 deals from 39 deals.
Great Nigeria Insurance (GNI) Plc was the most traded stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 75.4 million units traded for N5.3 billion.
GNI Plc also ended the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units sold for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
