Excess Crude Account hits $3.93 billion

Excess Crude Account hits $3.93 billion
July 21 21:24 2016

The Federal Government has announced an increase in the Excess Crude Account from $ 2.259 billion to $3.93 billion.

Briefing State House correspondents after Thursday’s National Economic Council meeting, Taraba state governor, Darius Ishaku said the Minister of Finance, Kemi Adeosun reported to the council that the balance in the Excess Crude Account (ECA) as at July 20, 2016 stood at USD 3.93 billion, up from USD 2.259 as at May‎.

He also said the minister gave an update on the Budget Support Facility for states‎, adding that 35 States applied for the facility, 28 met the requirements, 7 sent their required documentation late and were being processed.

The Taraba governor informed reporters that Minister of State, Petroleum Resources, Dr Ibe Kachikwu briefed the council on the current upstream Joint Venture Cash Call (JVC) arrangement in Nigeria’s Oil and Gas Industry and proposed a new self-funded JVC Cash Calls known as Incorporated JVCs or IJVC.

The governor said Kachikwu listed the benefits of the self-funded IJVC to include‎: improvement in accountability within the governing structure of the JVs,‎ a self-funding entity outside otherwise cumbersome government budget process, ‎less political interference given that operational control rests with joint teams and ultimately IJVC entities when formed.

The council also discussed specific steps and actions to be taken by both the FG and the state governments to intensify focus on diversifying the Nigerian economy especially through agriculture.

The council welcomed the new agricultural policy endorsed last Wednesday by the Federal Executive Council.