The amount accrued to the nation’s Excess Crude Account (ECA) so far this year was a subject of controversy on Monday between the Joint Senate Committee on Finance and Appropriations and the Minister of Finance, Dr Ngozi Okonjo-Iweala.
The Joint Committee is looking into the performance of the 2013 budget as it affects the federal government revenue-generating agencies.
A member of the Joint Committee, Ita Enang, disagreed with the Finance Minister, over the amount that has accrued to ECA in 2013 that is domiciled in the Central Bank of Nigeria (CBN) but managed by the Federal Ministry of Finance.
Enang, who is also the chairman of the Senate Rules and Business Committee had insisted that from records available to the committee, the sum of $14.06 billion was inflows to the ECA while $9 billion is outflow, leaving a balance of $5.06.
However, Finance Minister and Coordinating Minister for the Economy declined to disclose the exact amount that has accrued into ECA but only said a balance of $4.03b is remaining in the account.
She also disclosed that ECA’s “primary use is in the payment of oil subsidy for the country…Money goes in and comes out almost immediately. It’s a federation account matter. It belongs to all tiers of government. When we pay subsidy, it belongs to all tiers of government.
“So, the FG, states and local governments are all partakers,” adding that about N1.4 trillion has been paid as fuel subsidy this year.
Asked about the status of the Sovereign Wealth Fund (SWF), the Minister said: “The SWF has $1b; there have been no further payments into the SWF, as far as I know.”
Mrs. Okonjo-Iweala also denied that subsidy is being paid on kerosene, referring the committee to the NNPC for better explanation.
Last week, the Chairman, House Committee on Petroleum Downstream, Dakuku Peterside, had disclosed that government has paid N634 billion to subsidize kerosene in the last three years.
The breakdown according to him, shows that about N110 billion was spent in 2010; N324 billion in 2011 and N200 billion was expended in 2012.No figure was given for 2013.
Bukola Saraki, a member of the Joint Committee also asked the minister thrice if subsidy is being paid on kerosene to which she insisted that any outflow from the ECA was used to pay for PMS subsidy and not kerosene.
According to her, “Payment is for PMS only. It doesn’t include kerosene. I think NNPC should answer the question on subsidy for kerosene”.
