The Federal Government’s savings in its non-oil excess account increased by 304.1% in the first year of President Bola Tinubu’s administration.
According to the National Bureau of Statistics, N1.36 trillion was deposited between July 2022 and June 2023, while N5.48 trillion was disbursed between July 2023 and June 2024.
This significant rise is attributed to policies such as the unification of the foreign exchange market and the removal of fuel subsidies.
The Excess Crude Account (ECA), established in 2004, functions as a fiscal buffer, saving extra funds from non-oil exports for use during economic downturns.
The recent administration’s management of the account has included significant withdrawals, such as N228 billion to fund the 2023 general elections.
Despite occasional deviations from the standard revenue allocation formula, the current administration has significantly boosted the account’s savings, particularly after the removal of the fuel subsidy.
Under former President Muhammadu Buhari, savings allocations were relatively low, with significant increases observed after the current administration’s subsidy removal policy.
For instance, monthly savings reached as high as N696.93 billion in July 2023.
By April 2024, the non-oil excess revenue account had a balance of N638.87 billion, reflecting the government’s intensified efforts to bolster fiscal reserves.
Punch