The Accountant General of the Federation (AGF), Ahmed Idris revealed on Tuesday that the excess crude account of the country has depleted to $71,813,941.84.
Idris disclosed this while appearing before the Senate committee on Finance to offer explanations on the achievement made so far on the revenue projection for 2020 Appropriation Act passed by the National Assembly.
According to Idris, inflows into the excess crude account of the country have fluctuated and that transfer into the account has witnessed downward trend, since 2015.
He blamed the fluctuated inflows on the “positive and negative variances in the price of crude.”
The Senate committee is probing the inflows and transfer of foreign excess crude account from January 2015 to March 2020 due to the depletion. The committee is chaired by Solomon Adeola Olamilekan.
Specifically, the Senate is investing the transfer of $4 million from the excess crude account as payment of counsel’s professional fee which was issued out in February, 2020. The Senate want to know the name of the counsel, and the reason the payment was granted.
However, Idris failed to proffer valid explanation on the $4 million payment, just as he did not ascertain the name of the counsel.
Rather, he gave summary of the analysis of foreign excess account and revealed that “the highest excess inflow of the sum of $17.344 billion was recorded in 2018 while the lowest excess inflow of the sum of $0.276 million was recorded in 2015.”
He further disclosed that the weighted average price in 2008 and 2015 was $103.67 and $39.04 respectively.
“The inflows into the ECA comprise of: excess crude, excess PPT, excess royalty and interest accrued from invested funds.
“The outflows from ECA comprise of Paris and London club debt exit, distribution to the three tiers of government which include special distributions, augmentation and Sure-P, investment in Nigeria Sovereign investment Authority (NSIA), procurement of critical military equipment and subsidy payments to independents oil marketers,” Idris said.
Analysis of Foreign Excess Crude Account 2015 – 2020
A summary analysis of foreign excess crude account as revealed by the AGF indicated that in 2015, the balance brought forward was $2,060,554,240.82, allocation (monthly excess inflow was $275,622,787.67 with interest of $15,360,158.16 which brought the total inflow to $2,351,537,186.65. The total outflow through distribution to three tiers of government stood at $93,600,088.14 , bringing a total balance $2,257,937,098.51 respectively.
In the year 2016, the balance brought forward was $2,257937,098.51. The monthly excess inflow stood at $1,232,037,703.93 with interest of $9,680,884.16. Balance of sale proceeds of collateral sold as part of London Club Debt exit was $189,550,179 which brought the total inflow figure to $3,689,205,866. There was outflow of $1,063,956, 925, leaving a balance $2,625,248,940.
According to the analysis, in 2017, the balance brought forward was $2,625,248,940; monthly excess inflow:$733,274,658.49; interest:$22,354,401.36; exchange rate gain: $1,376,844.40; total inflow:$3,382,254,845.15. There was outflow in distribution to three tiers of government: $681,592,016.21; investment in Nigeria soverign investment Authority (NSIA): $250,000,000,00, bringing total outflow to:$931,592,016,21, and leaving final balance of $2,450,662,828.94 accordingly.
For 2018, there was balance brought of $2,450,662,828.94; monthly allocation excess inflow:$1,014,185,096.68; interest:$37,807953.07, bringing total inflow to $3,502,655,878,69. Outflow: advance payment for purchase of super tucano aircraft:$496,374,470.00; procurement of critical equipment for the Nigerian Army, Navy and Defence intelligence agency:$380,513,958.71; Paris club refund to states:$1,994,321,698.04, total outflow:$2,871,210,126.75, balance:$631,445,751,94.
In the year 2019, balance brought forward:631 445,751.94; monthly excess inflow:340,061,443.93; interest:3,885,662.22; exchange rate gain:$241,412.52; good ND valuable consideration: $34,689,099.11; total inflow:$1,010,323,369.72.
Outflow: procurement of critical equipment to Nigerian Army, Navy and defence intelligence agency:$4,430,340.90; Paris club refund to states:679,335,368.15; charges for breaking of investments:304,930.27; exchange rate loss:1,284,796.68; total outflow:685,355,436.00; balance:$324,967,933.72.
From February 2020, the analysis showed as follows: balance brought forward :$324,967,933.72; interest:$846,008.12; Total inflow:$325,813,941,.84.
Outflow for 2020 is: investment in Nigeria sovereign investment Authority (NSIA): $250,000,000.00; payment of counsel’s professional fee:$4,000,000.00; Total outflow:$254,000,000.00; balance: $71,813,941.84 respectively.
Meanwhile, chairman of the Senate committee, Senator Adeola has give the AGF one week to furnish the Senate with further details.
By Solomon Ayado, Abuja