Nigeria’s opposition Party (PDP) accused the ruling APC led government of squandering the $1 billion that was withdrawn from the Excess Crude Oil Account (ECA) a few months to the recent 2019 election. The government, however, replied stating that it kept the receipts as only about $880m was spent on a dozen fighter aircrafts ($490M) and other military procurements.
About the ECA
Nigeria earns its income majorly from Oil revenue, Oil revenues tend to fluctuate because oil price is volatile, this often leads to higher than expected Oil revenue. Any excess crude oil revenue is to be put into the ECA. The ECA economically was set up to save resources when oil prices are high, and to be drawn on when oil prices are low
K, Continue something doesn’t add up here 🤔
Maybe. It’s no secret that ruling political officeholders tend to come up with fictitious expenditure close to elections.
Case in Point: The Governor of Bauchi state accused his predecessor of spending N2.3bn to buy materials for burial in the state (N900m on the purchase of white cloth used for wrapping corpses while over N1.4bn was used to buy the wood for lacing the graves after burial).
It’s true that we shouldn’t deny the dead a befitting burial but N2.3 bn??? Please, how many people died?😩
Why it matters
The government should be held accountable. This call-out by the opposition party made the government reveal further details of what the $1B was spent on.
Nigeria’s Excess Crude Account has recently been ranked as the most poorly governed among similar funds operated by resource-rich countries in Sub-Saharan Africa. This is worrisome as the ECA balance which stood at $3.32 billion in 2014 has dropped by 85% to $480m as at today. (tweet this)