Nigeria’s Excess Crude Account (ECA) has been drastically depleted under the Muhammadu Buhari regime, falling from over $2 billion left by former President Goodluck Jonathan in 2015 to $376,655.
The Buhari regime disclosed this in a communiqué released following the FAAC meeting for July 2022, held in Abuja on Tuesday, but did not provide an explanation for the sharp decrease in the ECA funds.
The ECA fell as federal, state, and local government allocations increased by N121.624 billion in June, while FAAC shared a total of N802.407 billion.
The ECA is meant to be a savings cushion that stabilises government revenue and acts as a lifeline for the economy in difficult times.
According to the communique, total deductions for cost of collection was N44.606 billion and deductions for transfers, savings, refunds and 13 per cent derivation to Anambra State was a total sum of N373.200.
The ECA balance which stood at $60 million in October 2021, and fell to $35.8 million in January, has nosedived further to $376,655, plunging the nation’s economy into regress.
The ECA’s pitiful status has fueled further criticism of Mr Buhari’s inability to manage the nation’s resources wisely. His regime has been marked by heavy borrowing, looting, insecurity, inflation, a significant increase in food prices, and general unrest across the country.
The ECA was created in 2004 by former president Olusegun Obasanjo to track the country’s excess revenue from crude oil. The account balance in February 2014, just before Mr Buhari took office, was $3.6 billion, one of the highest balances ever.