₦airaland Forum

During the last administration, the Excess Crude Account (ECA) was consistently on the front burner of national discourse. Nigerians questioned every withdrawal made from it by the last government. Everyone seemed interested.

But since the advent of the current administration, the ECA has disappeared from the radar. Nobody hears anything about it anymore. And the ECA was reported to have about $2.5 billion by the time this government took over.

Since last year, oil prices have consistently been above the budget benchmark. This year's benchmark is $44.5/barrel. Current oil price is about $60/barrel. That's a difference of $15/barrel.

Daily oil production is 2.2 million barrels.

Multiplying $15 by 2.2 million, you have $33 million, that's 1.8 billion naira.

So the government rakes in about 1.8 billion naira extra budgetary income daily. You know what that amounts to in a month and in a year!

This excess crude money is supposed to be paid into the ECA to be saved, or to be shared by the three tiers of government. But nothing is heard about it, no update from the government. Nothing! And the government keeps borrowing money to finance budget deficit.

In the last administration, the complaint was that the money was being shared, as demanded by the governors, in this administration, nobody knows what happens to the money.

So excess crude oil acct still exist? Are you from Western Germany?I just remember National power holding company is NEPA

Nigerians will some day beg God to return the corrupt PDP against judicious APC, clueless Jonathan against wise Buhari

emmie14:
Nigerians will some day beg God to return the corrupt PDP against judicious APC, clueless Jonathan against wise Buhari

Prayer topic that has been going on for a year now

OKDnigeria:
During the last administration, the Excess Crude Account (ECA) was consistently on the front burner of national discourse. Nigerians questioned every withdrawal made from it by the last government. Everyone seemed interested.

But since the advent of the current administration, the ECA has disappeared from the radar. Nobody hears anything about it anymore. And the ECA was reported to have about $2.5 billion by the time this government took over.

Since last year, oil prices have consistently been above the budget benchmark. This year's benchmark is $44.5/barrel. Current oil price is about $60/barrel. That's a difference of $15/barrel.

Daily oil production is 2.2 million barrels.

Multiplying $15 by 2.2 million, you have $33 million, that's 1.8 billion naira.

So the government rakes in about 1.8 billion naira extra budgetary income daily. You know what that amounts to in a month and in a year!

This excess crude money is supposed to be paid into the ECA to be saved, or to be shared by the three tiers of government. But nothing is heard about it, no update from the government. Nothing! And the government keeps borrowing money to finance budget deficit.

In the last administration, the complaint was that the money was being shared, as demanded by the governors, in this administration, nobody knows what happens to the money.

They are busy stealing the money quietly while their zombies clap dor them asking for more terms

emmie14:
Nigerians will some day beg God to return the corrupt PDP against judicious APC, clueless Jonathan against wise Buhari

We are already begging God jare to remove the dullard

Op nice observation

They have already made lies for it.

These guys are not only looting, they dont even know how much they have looted and how much is remaining.

1. Nigeria does not produce 2.2 MBD
2. The extra funds (if any) is shared according to FAAC to states and local governments

Mynd44:
1. Nigeria does not produce 2.2 MBD
2. The extra funds (if any) is shared according to FAAC to states and local governments

Oya tell me, how many barrels do we produce daily. Meanwhile educate yourself by clicking on this link https://googleweblight.com/i?u=https://www.vanguardngr.com/2017/07/crude-oil-production-hits-2-2m-bpd/&grqid=kK9DH3rh&hl=en-NG&geid=1022

Mynd44:
1. Nigeria does not produce 2.2 MBD
2. The extra funds (if any) is shared according to FAAC to states and local governments

Aside from that,
1. The cost of production has to be taken into consideration.

2. The FG is into different kinds of joint ventures (JV) with producing companies. So the govt only gets a fraction of the sales

Mynd44:
1. Nigeria does not produce 2.2 MBD
2. The extra funds (if any) is shared according to FAAC to states and local governments

Weldone bro.

But, d truth is, d excess crude acct is illegal! No Nigerian law backs it, n Pmb wont be a party to such!

ashjay001:
Weldone bro.

But, d truth is, d excess crude acct is illegal! No Nigerian law backs it, n Pmb wont be a party to such!

But there is excess crude money. Where is it going to?

OKDnigeria:
But there is excess crude money. Where is it going to?

Into d federation acct, as earnings from oil. Creating a special acct for it, needs a bill passed by d nass.



Thats why gej was taken to court by amaechi n co then. It should be shared with other govt revenue, not designated as special.

Nigerians just use their own hands to waste four years of their lives.

ashjay001:
Into d federation acct, as earnings from oil. Creating a special acct for it, needs a bill passed by d nass.



Thats why gej was taken to court by amaechi n co then. It should be shared with other govt revenue, not designated as special.

And the Sovereign Wealth Fund that was established by an act of parliament?

Is that not one of the issues the Sovereign Wealth Fund is meant to address?

porka:
And the Sovereign Wealth Fund that was established by an act of parliament?

Is that not one of the issues the Sovereign Wealth Fund is meant to address?

Well, I cant really say. I've not had cause to probe d funding n terms of reference. Though, I've been coming about tidbits of news on investments carried out by them.

ashjay001:
Weldone bro.

But, d truth is, d excess crude acct is illegal! No Nigerian law backs it, n Pmb wont be a party to such!

If the account is illegal, then they should close it and put everything in the federation account.
No need to keep it there and then someone will be pilfering from it quietly and hoping nobody notices.

ChimaAgbalajob:
If the account is illegal, then they should close it and put everything in the federation account.
No need to keep it there and then someone will be pilfering from it quietly and hoping nobody notices.

I dont think its as easy as that. Though, it probably wont be funded again.

ashjay001:
Into d federation acct, as earnings from oil. Creating a special acct for it, needs a bill passed by d nass.



Thats why gej was taken to court by amaechi n co then. It should be shared with other govt revenue, not designated as special.

If it's indeed going into the federation Acct, then the govt is making more money than budgeted for. The budget deficit should have been covered. But they're still borrowing heavily to fund the deficit

OKDnigeria:
If it's indeed going into the federation Acct, then the govt is making more money than budgeted for. The budget deficit should have been covered. But they're still borrowing heavily to fund the deficit

Not my brief, but I always want a logical conclusion. This govt needs a lot of foreign currency to meet its obligations, there's been a shortage forever. Also, u cant spend outside d budget, any income coming in, after a budget has been presented n approved, cant be utilised until d next budget circle.



I also want to believe, d excess crude funds, is inclusive of what is being shared at d faac. It just wont be labelled such. Crude funds is crude funds! What is excess abt it?