FG Says It Used $35 Million From Excess Crude Account To Purchase Offshore Patrol Vessels- Nigeria.

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The Federal Government has responded to reports that the Excess Crude Account has dropped from $35.7 million to $376,655.

The government disclosed that the $35million disbursement from the Excess Crude Account (ECA) in June 2022; was an advance payment for the purchase of brand new Offshore Patrol Vessels (OPVs) for the Nigerian Navy.

The ECA is a savings account retain by the Federal Government and is by the difference between the market price of crude oil and the budget price of crude oil as in the appropriation bill. However, despite higher oil revenues, Nigeria has not added to the ECA this year.

Reacting to a report that revealed that Nigeria’s Excess Crude Account shrank from $35.37m to $376,655, the FG said, “The $35m disbursement from the Excess Crude Account (ECA) is from June 2022, and is an advance payment for the purchase of brand new Offshore Patrol Vessels (OPVs) for the Nigerian Navy.”

Finance Minister explained why the EAC has not been fund in a while, stating that “On the issue of the Excess Crude Account; in the past four years, because of volatility in the cause oil market, we have not had accrual to the excess cause account.

Nairametrics.

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