Nigeria has not saved any amount above the budget bench mark from oil sales in the last four years as stipulated in the excess crude account rule of the federal government of Nigeria. Minister of Finance, Zainab Ahmed said that in the past four years, because of volatility in the international oil market, Nigeria has not had accrual to the excess crude account (ECA). Ahmed made this known when she addressed State House correspondents on the outcome of the Federal Executive Council (FEC) meeting which was presided over by President Muhammadu Buhari in Abuja. The Ministry of Finance, Budget and National Planning had presented the draft copies of the Medium Term Expenditure Framework 2023-2025 to the Council for onward transmission to the National Assembly (NASS) for approval.
According to the Finance Minister, the draft document is for 2023-2025, with an assumption for crude oil price of $70 per barrel for 2023, $66 for 2024 and $62 for 2025, with an estimated production rate of 1.69 million barrels per day for 2023 and 1.813 million barrels per day for 2024 and 2025. “The assumptions that we made for the next medium term framework from 2023 to 2025 is that crude oil price will be at $70 per barrel for 2023, $66 per barrel for 2024 and $62 per barrel for 2025. Crude oil production is projected to be 1.69million bpd for 2023 and 1.813million bpd for both 2024 as well as 2025. We have also projected on the nominal GDP, that the size of Nigeria economy will rise up to N225.5 trillion with 95 per cent of this contribution by the non-oil sector while the oil sector will contribute only five per cent. And some steady increase from 2024 to reach up to N280.7 trillion in 2025. This means that Nigeria continues to retain its position as the largest economy in Africa.”
Ahmed also said the 2022 budget till April, performed very well with a steady growth in the economy for five consecutive quarters. She said the ministry got inputs from the Federal Executive Council and would make the necessary adjustments, for onward presentation to the National Assembly. “On the issue of the excess crude account, in the past four years, because of volatility in the course oil market, we have not had accrual to the excess crude account. So, what we have had has been gradually used up for different purposes and it is always used in consultation with the National Economic Council – that is the Governors because this is a Federation Account. The last approval that was given by the council was the withdrawal of $1billion to enhance security. We have been utilising that and the last trench of that has been finally released because deployment to security agencies are based on the contracts that are executed and it’s been used strictly for that security purpose. So, the utilisation of the account is with the full knowledge of the governors,” she said.
