- Nigeria’s Extra Crude Account (ECA) has decreased by 72 p.c from $2.2 billion in 2015 to an all-time low of $35 million
- ECA is a financial savings account retained by the Federal Authorities and is funded by crude oil gross sales that’s larger than the budgeted oil value benchmark
- In 2021 oil value averaged $71 per barrel, larger than $40 per barrel benchmark by the federal government in 2021, however Nigeria was unable to supply sufficient to promote
The Nationwide Financial Council has revealed that Nigeria’s Extra Crude Account now stands at $35,868,086.40 as at seventeenth January 2022.
In accordance the Statehouse publication, the brand new ECA steadiness was supplied by the Honorable Minister of State for Finances and Nationwide Planning, Prince Clem Agba through the 122nd bodily assembly of the Council in Abuja.
The brand new determine signifies that from October 2021 when the account was at $60,857,773.43($60.8m) FG dipped its palms into ECA account and withdrew $24.98 million in lower than three months.
In his presentation, Mr Agba revealed the present state of Nigeria’s underlisted accounts as at seventeenth of January 2022, Nairametrics reports.
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“Nigeria’s Extra Crude Account (ECA) Steadiness As At seventeenth January 2022 Stands At $35,868,086.40. Stabilization Account Steadiness As Of seventeenth January 2022 Stands At N30, 685, 611, 413.79 whereas Growth Of Pure Assets Account Steadiness As At seventeenth January 2022 Stands At N42, 820,382,381.40”
The ECA is a financial savings account retained by the Federal Government and is funded by the distinction between the market value of crude oil and the budgeted value of crude oil as contained within the appropriation invoice.
Presidency defends the drop in oil financial savings
In defence of the depetion of the account, Tolu Ogunlesi, Particular Assistant to President Muhammadu Buhari on Digital and New Media on Friday mentioned: “For these mentioning ECA was $2.1B in 2015, have in mind $1 billion went to safety purchases (incl 12 Tremendous Tucano).
“Half went to Paris Membership Refunds to States and a considerable portion invested into the Sovereign Wealth Fund/NSIA.”
On his Twitter deal with he additionally confused that the ECA was as soon as $20 billion in 2009 earlier than depleting to $2 billion in 2015.
Oil nears $90, the Highest Stage Since 2014, however time it’s headache
Legit.ng had earlier reported that Worldwide Oil value is racing in direction of $90 a barrel and it’s presently buying and selling on the highest stage because the administration of Goodluck Jonathan.
Earlier than the top of 2021, there was a flurry of projections that oil costs might hit $90 and $100 a barrel.
With reported disruption within the Center East together with a key pipeline operating from Iraq to Turkey it’s wanting more and more doable oil will hit $90 in days.