By Bamidele Samuel Adesoji

Nigeria’s Excess Crude Account has dropped to $480 million. This is as controversy continues to trail the $1 billion military spending which was withdrawn from Nigeria’s Excess Crude.

Nigeria’s Excess Crude Account has largely depleted in the last 5 years, and currently stands at $480 million.

According to the Central Bank of Nigeria’s annual report for 2018, Nigeria’s crude excess account fell from $2.45 billion in 2017 to $480 million as of December 2018.

• ECA stood at $3.32 billion in 2014 and has continued to drop.

• Specifically, between 2014 and 2018, crude excess account dropped by 85%, from $3.32 billion to $480 million respectively.

• This means that about $2.84 billion have been withdrawn by the government since that peak.

• Similarly, the CBN disclosed in its latest annual report that the drop-down in ECA between 2017 and 2018 is due to significant draw-down to bridge the financing gap of the three-tiers of government.

The Controversies: Recently, the federal government under President Muhammadu Buhari was accused of mismanaging the country’s Excess Crude Account especially the $1 billion reportedly spent on military equipment.

• The National Security Adviser (NSA) retired Major General Babagana Monguno Gen. Babagana was quoted to have disclosed that he was not aware of the whereabouts or disbursement of the $1billion drawn from the ECA by the Buhari presidency in 2017 for security purposes.

• While controversies trail the statement credited to the NSA, with many describing it as diversion of public funds, the Presidency provided some explanations.

• Responding to the allegations, Senior Special Assistant on Media and Publicity, Garba Shehu, disclosed that various procurements had been made for the purchase of critical equipment for the Nigerian Army, the Nigerian Navy and the Air Force, contrary to the allegations.

How the $1 billion was spent

According to Garba Shehu;

“The record we have is that the Buhari’s administration paid $496 million for a dozen Super Tucano fighter aircraft for the Air Force in a direct, government-to-government (no contractors or commission agents) transaction with the government of the United States of America. They are due for delivery in 2020.

“Various other military procurements for critical equipment have been made. These are for the Nigerian Army and the Nigerian Navy, amounting to $380.5 million. These procurements include money for the purchase of Navy Lynx helicopters.

“The total amount spent so far is $876.8 million. The equipment paid for has due dates of delivery of between six months to two years. Balance of the money that is unspent as at today is $123.1 million.

“The entire expenditure involved in these exercises is on the basis of government-to-government procurement. In cases where the Nigerian government dealt with equipment manufacturers, their home governments have in all cases given guarantees to the Federal Government.

“Again, it is important to stress that no contractors or commission agents have been involved in the procurements under discussion.”

Nigeria’s ECA in retrospect: In Nigeria, there are two Sovereign Wealth Funds: the Excess Crude Account and the Nigeria Sovereign Investment Authority (NSIA). Note that these two are funded by the savings earned when oil prices are at peak.

• Hence, as a larger chunk of revenue is appropriated for ECA and NSIA, the country’s external reserves are likely to fall.

• Note that the sovereign wealth fund was established to address the controversies surrounding the Excess Crude Account.

• The fund is usually expected to generate revenue to meet budget shortfalls in the future, provide dedicated funding for the development of infrastructure and saves for future generations.

ECA depleted by 85% in 5 years: A closer look at the various annual reports of the Central Bank of Nigeria shows that Nigeria’s excess crude account has depleted significantly over the years.

Some key takeaways: Earlier in April, the International Monetary Fund (IMF) ranked Nigeria as the world’s second-worst country in the use of sovereign wealth funds. According to the report, Qatar is the only country worse than Nigeria on the index.

Source: https://nairametrics.com/2019/07/25/1billion-military-spending-shrinks-excess-crude-account-to-480-million/

Front Page: Lalasticlala Mynd44

This is what the Niger is paying continuously for the so called majority and zoo to keep afloat..
And the Delta is nothing,has nothing to show for sustaining the zoo

The northerners created this Boko Haram trouble,they created maitasine,they created elzazacky, their Fulani herdsmen are everywhere kidnapping and killing people.

Crude oil proceeds exploited from the Niger Delta is being wasted year in,year out on these.
5% from same proceeds is also being expended to restructure and reconstruct the north east,is this acceptable?
And these same people are against True Federalism,they are against Restructuring,they are against Resources control,they are against Regionalism,Should this be allowed to continue?

Going from Apapa to Oshodi in Lagos in the evening,look to your left and right,all the way,not a single power,no light, darkness everywhere,for decades.


Are we in a country or in a 1900 bushland?

[s]

GMbuharii:
This is what the Niger is paying continuously for the so called majority and zoo to keep afloat..
And the Delta is nothing,has nothing to show for sustaining the zoo

[/s]
It was the zoo that told the South to keep recycling leaders like Ibori, Udaghan and Okowa.

The zoo voted failures like Orji Uzor Kalu and T.A Orji

It was the zoo that made Asari Dokubo to site his university in the Benin Republic after getting contracts worth millions from the Nigerian government.

Same zoo forced Diezani to spend $40m on jewelries and I-Phone.

The zoo made Aba the dirtiest slum in Nigeria.

Oga, you better hold your leaders responsible and stop blaming others for your kerosene sharers you call leaders.

For people that couldn't read, This is How Buratai and his fellow criminals are draining our Treasury claiming to be fighting Terrorists created by them.

In 2016 criminal fed gov always talk about diversifying our economy to prevent dependency on oil investing billions into Farming, I still wonder why Northerners can't fund their war against self inflicted terrorism with their farm proceeds?

nigeria is a 21st century updated scam

Shithole

•The record we have is that the Buhari’s administration paid $496 million for a dozen Super Tucano fighter aircraft for the Air Force.
•Various other military procurements for critical equipment have been made. These are for the Nigerian Army and the Nigerian Navy, amounting to $380.5 million.
•The total amount spent so far is $876.8 million.

I'd like to say we could've avoided alot of this madness by eliminating the corrupt security votes. Nigeria spends 241.2 billion naira on security votes in 2017 that could be budgeted transparently directly to millitary and other security forces. That money is equivalent 670 million dollars which would have bought the millitary equipment.

Minister of Defence, Mansur Dan-Ali said the recurrent expenditure in military budgets did not give enough room for adequate financing of capital projects, adding that in 2018, for example, the recurrent expenditure was about 73 per cent.

NASS already passed police trust fund bill to fund their needs. Eliminating unlawful security votes will do same for millitary. If you look at chart nigeria could literally double budget of navy and airforce if the money is freed up.

ok

All is well

International Monetary Fund (IMF) ranked Nigeria as the world’s second-worst country in the use of sovereign wealth funds.

ECA depleted by 85% in 5 years

A few politicans have said ECA is illegal anyway. I think NASS should look into regulating these executive more. How is the managed and invested compared to other countries? After that question is answered they'll figure out solutions.

[s][/s]

[s]

Bolustical:
[s][/s]
It was the zoo that told the South to keep recycling leaders like Ibori, Udaghan and Okowa.

The zoo voted failures like Orji Uzor Kalu and T.A Orji

It was the zoo that made Asari Dokubo to site his university in the Benin Republic after getting contracts worth millions from the Nigerian government.

Same zoo forced Diezani to spend $40m on jewelries and I-Phone.

The zoo made Aba the dirtiest slum in Nigeria.

Oga, you better hold your leaders responsible and stop blaming others for your kerosene sharers you call leaders.

[/s]

Holy cow

Stolen monies.Looted and relooted funds yet BH is yet to be defeated.

Almajiri
Parasite

The last issue is the unproductivity of Defence Industries Corporation of Nigeria (DICON). They should be making more sophisticated weapons after decades of bring in exist but all they do is design light arms. Recently Nigeria bought a cache of ammunition from Europe. My question is why is our weapons industry so weak.

Im thinking DICON role should be re-examined. They private sector can manufacture ecerything from weapons to equipment. Proforce and Innoson already do things like armoured vehicles.

“DICON, the main statutory manufacturer of arms and ammunition in Nigeria, has suffered neglect over the years and has been virtually non-operational. Consequently, the defence sector has to rely on external influence to determine the types of equipment to be sold or acquired. This has increased expenditure, reduced the multiplier effects on employment, encouraged technological spin-offs, and underdevelopment of the economy.

Minister of Defence, Mansur Dan-Ali

Bolustical:
[s][/s]
It was the zoo that told the South to keep recycling leaders like Ibori, Udaghan and Okowa.

The zoo voted failures like Orji Uzor Kalu and T.A Orji

It was the zoo that made Asari Dokubo to site his university in the Benin Republic after getting contracts worth millions from the Nigerian government.

Same zoo forced Diezani to spend $40m on jewelries and I-Phone.

The zoo made Aba the dirtiest slum in Nigeria.

Oga, you better hold your leaders responsible and stop blaming others for your kerosene sharers you call leaders.

In the bitterness and ugliness and deep sorrow of your black heart,you singled out the SS and SE.....heaven knows that you and your region is as good as dead without these people.

Almajiri

Integrity at its peak! Baba knows best o! If not for Baba bubu Nigeria would have been finished so if you don't like Nigeria or you have another country, Baba has said you can pack and leave! (Epistles of Zombie BMC Sycophants)! It is only when Buhari and his crew vacate office and a transparent, focused Southerner steps into that office that the real definition of corruption in all its 'glory' will be exposed.

Bolustical:
ok

Buroda wey mumu, we all know you didn't read the OP
Do you need somebody to read and explain to you?
.

BH was already on the fringes by the time Jonathan left office. The $1b was just for 2019, election.

Buhari is surely spending his retirement in jail for various offences against the good people of Nigeria.

“The total amount spent so far is $876.8 million. The equipment paid for has due dates of delivery of between six months to two years. Balance of the money that is unspent as at today is $123.1 million.

What are y'all going to do with other hundred million?

Final bump

Sad

Election funding

Buhari ole barawo

They should not forget the over 400M soldiers absconded with jare, it's part of the MILITARY SPENDING

The level of hypocrisy and injustice in Nigeria is mind boggling. The way things are going , I am just simply aghast and dumbfounded at the level of criminality and recklessness being perpetrated.
My greatest fear is that, how many generations will our leaders waste and dash their hope. And is there hope for our children?

pacino26:
They should not forget the over 400M soldiers absconded with jare, it's part of the MILITARY SPENDING

Its been a few days they haven't made any arrest. They're a really incompetent bunch. If they were they
Theives should be skinned and boiled within the week. Who knows what covert action they doing.