FG Moves to Liquidate Excess Crude Account

Reprieve may have come for the financially ailing states and local governments as the Federal Government has concluded plans to share about $1.7 billion balance in the Excess Crude Account (ECA) among the three tiers of government.
Though Edo State Governor, Adams Oshiomhole had announced after the inauguration of National Economic Council (NEC) last week that about $2 billion was left in that account by the immediate past government which had allegedly depleted the account from $4.1 billion between last November and May this year, the Accountant General of the Federation (AGF), Ahmed Idris, said on Monday that only about $1.7 billion would be shared.
He made this disclosure in an interview with State House correspondents after a closed-door meeting with President Muhammadu Buhari at the Aso Rock Presidential Villa.
This development may mark the beginning of an end for the controversial ECA which the Supreme Court declared illegal long ago.
Besides, Buhari had in a meeting with governors of the 36 states of the federation, abolished the account as he ordered that henceforth all government earnings should be paid directly into the consolidated account by all agencies in line with constitutional prescription.
The AGF, who was led to the meeting by the Permanent Secretary, Federal Ministry of Finance, Mrs Anastasia Daniel Nwobia, said the amount would be distributed based on approved formula.
Nwobia, who had addressed journalists before the AGF took his turn, rejected claims in some quarters that civil servants were engaged in serious treasury looting as a result of the delay by the Buhari administration in appointing ministers.
She had also pointed out that the finances of government were not as bad as was being painted in some quarters.
According to the AGF, the amount in the ECA had been “hovering between $1.6 to $1.7 billion, and that is what we are going to distribute among all the three tiers of governments, the federal, states and local governments based on the approved formula.”
He added: “Even today (Monday), we are going to meet. The FAAC is going to meet, and we are going to distribute as agreed and directed during the NEC meeting last week, and the position is very clear, what we met on ground is what we are going to distribute.”
He continued: “The general message is clear. Mr. President has a clear direction which we all have to fall in line with: prudent management of resources and identifying more alternative ways of generating revenue, which we are set to do and to manage the meager resources we found on ground very efficiently and effectively for the betterment of the economy.”
The meeting with the president was basically to brief him on the activities of the ministry of finance, he added.
Asked about rumours of massive looting in the ministries as a result of the absence of ministers, Mrs. Nwobia said: “It is an unfair statement to make. If people have evidence that there is large-scale looting going they are free to come with such.
“The freedom of information act allows that you ask questions. So, if there are ministries they are suspecting of embarking on large-scale looting, which I think is not true, but everybody is free to ask.
“Routinely, we go on with our work, our functions as the ministry of finance; the work has not stopped. Government is a continuum. So, all our mandates and functions will continue to implement them as required”.
On whether the controversy with state governors over spending in the past administration came up at the meeting with the President, she said: “That was not discussed with the president because it was an issue that was discussed thoroughly at the National Economic Council meeting.”
Asked whether the absence of political heads has any effect on the ministries, she said: “I don’t think it is an issue to bother. You know like I said, government is a continuum. Even if you have political heads there, the engine room of the service is the civil servants, and we have continued to do our work. What I will say is that the briefing is to bring Mr. President up, to speak one-on-one on what is happening in your agency, though handing over notes were presented. But I think discussing the handing over notes and clarifying certain issues in the handing over notes is very important.
“That is what we have done with Mr. President and at this briefing you have a bit of insights on how he wants you to run the ministry in the interim”.
On the President’s view about the management of resources, Nwobia said the President was concerned about prudent management of the country’s resources.
She said: “We are taking that message away with us and we also intend to work assiduously to ensure that revenue leakages are blocked and also shore up our revenue”.
When pressed further to comment on the state of pathetic country’s finances, the Permanent Secretary said: “The state of Nigerian finances is okay. Our finances are still okay, though we are still going through challenges of revenue stream to government.
“And this, you know, obviously is from the oil shock- the price of oil that has dropped. It has significantly reduced the revenue stream to government. But we are working in other ways to see how we can shore up the revenue, so that we will be able to meet our expenditure”.
On the controversy surrounding subsidy payment, she said: “We did not say that we will not pay subsidy. Like the former minister said, there is a liability on subsidy, which is being verified by the CBN and Budget Office of the Federation.
“The issue had to do with the forex differentials which they were claiming and this committee is looking into it, and as soon as it is resolved we will be able to add the verified amount also when the committee finishes its work”.