Nigeria’s Excess Crude Account now at $35 million

The National Economic Council has revealed that Nigeria’s Excess Crude Account now stands at $35,868,086.40 as at 17th January 2022.

The Excess Crude Account (ECA) is the name of a Nigerian government fiscal account that was created to save revenues—in excess of the budgetary benchmark price—that was generated from the sale of oil.

This information was made public in a presentation delivered 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 Council stated that it will support the second iteration of the Subnational Ease of Doing Business Report which is to be launched in the second quarter of 2022.

 Mr Agba revealed the current state of Nigeria’s underlisted accounts as at 17th of January 2022.

Agba stated that, “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”

He added that, “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.

Meanwhile, Presidential aide has explained how Nigeria’s Excess Crude Account fell from $72.4 million to $35milion in a space of one year despite crude oil averaging higher than Nigeria’s benchmark for the year.

Tolu Ogunlesi, Special Assistant to President Muhammadu Buhari on Digital and New Media on Friday explained that 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.

KEY TAKEAWAYS About Excess Crude Account 

• The Excess Crude Account (ECA) is a fund established in 2004 by the national government of Nigeria intended to stabilize the country’s economy and smooth out the impact of price volatility in oil exports.
• The ECA is funded by the difference between the market price of crude oil and the budgeted price of crude oil as contained in the government’s appropriation bill.
• Despite its good intentions, the ECA has been riddled with controversy, allegations of corruption, and uncertain performance.
• The ECA has transitioned since 2011 to a new sovereign wealth fund, which has had better results to date.

Established in 2004, the ECA’s primary objective was to protect Nigeria’s planned budgets against shortfalls caused by the volatility of crude oil prices. By detaching government expenditures from oil revenues, the Excess Crude Account aimed to insulate the Nigerian economy from external economic shocks.