- Nigeria’s Excess Crude Account (ECA) has decreased by 72 percent from $2.2 billion in 2015 to an all-time low of $35 million
- ECA is a savings account retained by the Federal Government and is funded by crude oil sales that is higher than the budgeted oil price benchmark
- In 2021 oil price averaged $71 per barrel, higher than $40 per barrel benchmark by the government in 2021, but Nigeria was unable to produce enough to sell
The National Economic Council has revealed that Nigeria’s Excess Crude Account now stands at $35,868,086.40 as at 17th January 2022.
According the Statehouse publication, the new ECA balance was provided by the Honorable Minister of State for Budget and National Planning, Prince Clem Agba during the 122nd physical meeting of the Council in Abuja.
The new figure means that from October 2021 when the account was at $60,857,773.43($60.8m) FG dipped its hands into ECA account and withdrew $24.98 million in less than three months.
In his presentation, Mr Agba revealed the current state of Nigeria’s underlisted accounts as at 17th of January 2022, Nairametrics reports.
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"Nigeria’s Excess Crude Account (ECA) Balance As At 17th January 2022 Stands At $35,868,086.40. Stabilization Account Balance As Of 17th January 2022 Stands At N30, 685, 611, 413.79 while Development Of Natural Resources Account Balance As At 17th January 2022 Stands At N42, 820,382,381.40"
The ECA is a savings account retained by the Federal Government and is funded by the difference between the market price of crude oil and the budgeted price of crude oil as contained in the appropriation bill.
Presidency defends the drop in oil savings
In defence of the depetion of the account, Tolu Ogunlesi, Special Assistant to President Muhammadu Buhari on Digital and New Media on Friday said: “For those pointing out ECA was $2.1B in 2015, keep in mind $1 billion went to security purchases (incl 12 Super Tucano).
“Part went to Paris Club Refunds to States and a substantial portion invested into the Sovereign Wealth Fund/NSIA.”
On his Twitter handle he also stressed that the ECA was once $20 billion in 2009 before depleting to $2 billion in 2015.
Oil nears $90, the Highest Level Since 2014, but time it is headache
Legit.ng had earlier reported that International Oil price is racing towards $90 a barrel and it is currently trading at the highest level since the administration of Goodluck Jonathan.
Before the end of 2021, there was a flurry of projections that oil prices could hit $90 and $100 a barrel.
With reported disruption in the Middle East including a key pipeline running from Iraq to Turkey it is looking increasingly possible oil will hit $90 in days.