The National Economic Council (NEC) in Abuja on yesterday requested the Federal Government to give the details of the spending on Excess Crude Account (ECA) to the states.
Gov. Godswill Akpabio of Akwa Ibom made this known after the NEC meeting presided over by the Vice President Namadi Sambo at the State House.
NEC is the highest economic decision making body statutorily presided over by the vice president with all state governors, FCT Minister, Attorney-General of the Federation and some ministers as members.
Akpabio said the Minister of Finance, Dr Ngozi Okonjo-Iweala, told council that the fund in the ECA had risen to about 3.5 billion dollars after payments of fuel subsidy and SURE-P.
“The NEC meeting holds today, the first in 2014. During the meeting, the Minister of Finance, our Lady Okonjo-Iweala reported to the council the progress in the ECA.
“She informed the council that as at today, the ECA has risen to about 3.5 billion dollars after payment for fuel subsidy and SURE-P.
“The council deliberated on it and resolved that there was need for expeditious action to be taken to resolve all the legalities surrounding the issues of ECA, particularly the issue of expedition action on the cases pending in court.
“It was also further suggested that at least two separate accounts should be maintained, one for excess crude and the other for SURE-P,’’ he said.
The ECA is an account maintained by the Federal Government to save oil revenues above a base amount derived from a defined benchmark price.
The ECA was established in 2004 and its objective is primarily to protect planned budgets against shortfalls due to volatile crude oil prices.
It will be recalled that in 2010, the NEC approved the plan to replace the ECA with a National Sovereign Wealth Fund.
Following controversies over the sharing formula and spending procedure of the ECA, the 36 state governors under the aegis of the Nigeria Governors Forum, had dragged the Federal Government to the Supreme Court.
Specifically, the governors are seeking the judicial interpretation of the management of the ECA.
Source: Daily Newswatch
