FG withdraws $1.6bn in three weeks, shrinks ECA to $631m

The Federal Government has withdrawn $1.6bn in three weeks from the Excess Crude Account, as the ECA shrinks to $631m.

Between November 25 and December 19, the amount in the Excess Crude Account declined by about $1.68bn, statistics obtained from the Federation Account Allocation Committee have revealed.
According to Punch Nigeria, as of November 25 when the FAAC committee meeting was held to allocate revenue for that month, the balance in the ECA was put at $2.319bn.
However, at the resumed meeting on Wednesday at the headquarters of the ministry of finance, the balance, according to the Permanent Secretary in ministry, Mahmoud Dutse, had dropped to $631m.

Dutse, who briefed journalists shortly after the meeting, said withdrawals were made by the Federal Government from the ECA to settle the last tranche of the Paris Club Refund.

Dutse did not provide the amount withdrawn but the analysis by a correspondent of Punch Nigeria showed that about $1.68bn might have been withdrawn during the three weeks period. He said,

“The balance in the ECA is $631m. The final payment for the Paris Club Refund to states was made and the figure was deducted and that’s what accounts for the difference.”

When reminded that it was wrong for such deductions to be made for such purpose, he replied that the committee got an approval from President Muhammadu Buhari and the Federal Executive Council before making the withdrawal.