The Excess Crude Account (ECA) that was created to provide aid to the federation in rainy days, depleted from about 11 billion US dollars in December 2012 and the account now has only about 2.1 billion US dollars left.
“Basically, it’s a rainy day fund and what is happening now, is that it is raining and the support fund is down to 2 billion dollars. Ten per cent of its peak but it tells you a much more fundamental story,” Bismarck Rewane, CEO Financial Derivatives told CNBC Africa.
Gross revenue during the month increased to 540.790 billion naira compared to 479.950 billion naira recorded last December, regardless of the serious disruptions in oil production and lifting operations occasioned by maintenance, multiple leaks, pipeline vandalism and theft in the period under review.
“It is worrying that there is nothing left and we are 11 months to an election, which means that if the current rate of spending continues, in another two months, that account will be zero. Essentially, what has happened is that, this fund has been raided,” he explained.
Accountant General of the Federation (AGF), Jonah Otunla said at the end of the meeting yesterday that mineral revenue for the month stood at 439.562 billion naira while the non-oil component was 101.308 billion naira.
“First and foremost, we have to stop raiding our savings account. [Secondly], it tells you a much more fundamental story,the problem with the Nigerian economy, which is, the leakages are in excess of the injections and the leakages happen at different levels,” he said.
“You arrest the haemorrhage by blocking the leakages both at the output level, the revenue level and then the effective spending level,” he added.