Excess crude account depletion raises fears
Programme Coordinator of the Nigeria Natural Resource Charter (NNRC), Tengi George-Ikoli, has expressed fears that the dip in oil prices could send the country back to recession going by the depletion of the Excess Crude Account (ECA).
According to The Guardian, following the rising and falling of global oil price Tengi has suggested that the country’s economy remained in danger.
According to her, Nigeria must use all its natural resources to develop other sectors of the economy to make its revenue base independent of fluctuations associated with crude oil.
The ECA, which was established in 2004, is operated by the Federal Government to save revenues which were in excess of budgetary benchmarks from crude sales. In November 2008, the account was $20 billion.
In mid-2010, the account was depleted to less than $4 billion. In April 2018, the balance stood at only $1.8 billion. Last December, its content fell from $ 2.319 billion the previous month to $631 million.