Nigeria’s Excess Crude Account shrinks by 85% in 4 years

As controversy continue to trail the $1bn military spending, Nigeria’s Excess Crude Account has dropped further to $480 million from the $2.5bn recorded at the end of 2017.

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 This means that about $2.84 billion have been withdrawn by the government since that peak.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

Recall that 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 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.

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.

According to Garba Shehu, 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. And 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.”