Over the past eight years, Nigeria’s excess crude account has decreased by 89%, going from $4.1 billion in November 2014 to $472,513 in the same time period in 2022.
The ECA’s balance as of November 23, 2022, was $472,513.64, according to a statement from the Ministry of Finance, Budget, and National Planning that was seen by The Lightgospel on Wednesday.
According to Investopedia, an investment and business dictionary, the ECA is the Federal Government’s fiscal account that was established to save revenues from oil sales that were greater than the budgetary benchmark price.
Economists say that the country’s revenue crunch, oil market volatility, and a lack of inflows have all contributed to the account’s depletion over the past eight years.
Jonathan Aremu, a professor of economics at Covenant University in Ogun State, stated, “It is a simple fact that when you spend money from an account and you are not adding to it, it will deplete.”
“The oil price must rise above the budgeted price for you to increase the ECA.”Nothing enters the room if it does not.Additionally, it depletes if the amount spent exceeds the amount deposited.”This is the circumstance,” he continued.
At 4 p.m. on Wednesday, Brent crude sold for $88.45 per barrel.However, at the same time, WTI crude was $81.13 per barrel.The budget for 2022 had an oil benchmark of $57, but the benchmark is still about $30 higher than the current price of oil.Despite rising oil prices, the ECA has been declining since the beginning of 2022 due to the conflict between Russia and Ukraine.

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