The Bayelsa State Government said it received the sum of N90 billion from the Federal Government’s Excess Crude Account (ECA) as of October 2022.
This was disclosed by the Technical Adviser to the Bayelsa Governor on Treasury and Accounts, Mr Timipre Seipulo, during an announcement of income and expenditure for September and October 2022 in Yenagoa.
More details: The ECA is used to save excess oil revenue from the Federal Government’s budgetary crude oil benchmark. Nairametrics understands that the funds are paid quarterly from the Federation Account to oil-producing states.
Monthly receipts: Seipulo revealed that N20.24 billion net receipt for September 2022 accrued to the state government from the Federation Account Allocation Committee (FAAC) while total FAAC deductions stood at N1.59 billion
He also announced N27.56 billion net receipt for October 2022 and N1.6 billion as total FAAC deductions.
On the total funds received so far up to October, he said:
- “For this month, what is received from that account is N13.8 billion but like what they have said before ‘the refund which a lot of people have talked about’ is not a monthly payment, it’s a quarterly payment and paid over 36 months.
- “As of now, the net received from the fund so far is N90 billion up to October. And, if you look at the major projects we have also done, we have done quite some major projects which, we are utilizing the funds and the major ones for instance the Yenagoa-Oporoma road which the state has spent over N12 billion,” Seipulo explained.
The state added they have disbursed over N100 billion to contractors for infrastructure projects.
Bayelsa State’s IGR: On state Internally Generated Revenue, Seipulo noted the state earned the sum of N2.65 billion for September.
- “Our IGR for September 2022 was N2.651bn. You see, that is far beyond what we normally have.
- “The increase arose because there was N1.1 billion IGR receipt, and also there was about N1.5 billion that was got from federal agencies and that money was the portion that was due to Bayelsa State.
- “So those two amounts accounted for the N2.651 billion IGR fund for that month (of September),” he said.
What you should know: Nairametrics reported earlier this month that President Muhammadu Buhari had approved a total payment of N1.7 trillion to 9 oil-producing states as a 13% oil derivation subsidy and SURE-P refunds owed them by the federal government.
- These 9 states were subsequently paid N625.43 billion as a 13% derivation fund, subsidy, and SURE-P refunds from the federation account in the last 2 years.
- Among the states that have received the refunds dating from 1999 to 2021 include Abia, Akwa-Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo, and Rivers.
