Excess Crude Account (ECA) stands at $72.4m

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The National Economic Council (NEC)Thursday, received an update on the Federation Accounts from the Minister of Finance Budget and National Planning, Mrs Zainab Ahmed.

The update presented at a virtual NEC meeting presided over by Vice President Yemi Osinbajo, and anchored from the Presidential Villa, Abuja, showed that the nation’s Excess Crude Account which attained a peak of $20billion in January of 2019 is still tottering at a mere $72.4million as of May 18, 2021.

Failure of former President Goodluck Jonathan’s government to save for the rainy day however, saw the ECA eroded to $2.07billion in May 2015, while the succeeding Muhammadu Buhari administration grew it to $2.26billion in April of 2016.

Thereafter the account headed to its worst level at $72.4million following years of consistent crude oil crash.

Governor Babajide Sanwo-Olu of Lagos State who briefed State House correspondents after the meeting, stated “At today’s NEC meeting, which was chaired by the vice president, I have the briefing that was presented by the Minister of Finance, Budget and National Planning. They gave us a balance on the Excess Crude Account (ECA) and the balance as at May 18 stood at $72.4 million and on the Stablisation Account, it is N24.7 billion as at May 18.

“Finally on the Development of Natural Resources, the balance as at May 20 stands at N23.7 billion.

“Those are the figures that the Minister of Finance, Budget and National Planning gave at the council today,’’ he said. The governor added that the Council also received a comprehensive presentation from the board of Nigeria Sovereign Investment Authority (NSIA).

He said that NEC approved NSIA’s report and financial statement, and commended the performance and the sterling contributions of the board members to the growth of Nigeria’s sovereign wealth.

Meanwhile, the governors had  restated their request for the deferment of the repayment of the Budget Support Facility loans which was to have started this month.

Ekiti State Governor, Dr. Kayode Fayemi, who is also Chairman, Nigeria Governors’ Forum, reported interactions with the Finance Minister and the CBN Governor on the matter.

Also speaking at the virtual meeting, Governor of the Central Bank of Nigeria, Godwin Emefiele, emphasized the importance of timely repayment of loans, especially those owed commercial banks, indicating the challenges inherent in a further repayment delay including audit concerns. He said the repayment of the commercial loans should resume this month. 

SOURCE: THE SUN

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