Economy

Buhari Makes Another Huge Withdrawal From Oil Savings Account, Now Almost Empty

Published

2 years ago

July 27, 2022

The Federal Government has again withdrawn from the Excess Crude Account (ECA) leaving only $376,655.09 from $35.377 million in May, this year. This means that in one month the government withdrew $35,000,344.91 from the ECA, Economic Confidential reports.

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.

The information about the ECA’s draw-down is contained in the abridged version of the Federation Account Allocation Committee (FAAC) Communique released by the Director in charge of Information in the Office of the Accountant General of the Federation (OAGF), Henshaw Ogubike, at the end of the monthly FAAC meeting in Abuja, on Tuesday.

Presidency defends the drop in oil savings Legit.ng had earlier reported the depletion of the ECA was defended by Tolu Ogunlesi, Special Assistant to President Muhammadu Buhari on Digital and New Media.

In a tweet he stressed that the ECA was once $20 billion in 2009 before depleting to $2 billion in 2015. “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.”

Oil price at highest Level Since 2014, but time it is headache. Edujandon.com 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.