Governors of the 36 states of the federation have agreed to concede $1 billion from the Excess Crude Account (ECA) to the Federal Government to enable it to prosecute the ongoing war against insurgency in the North-East.
The ECA is a government account used to save oil revenues above a base amount derived from a defined oil benchmark price.
It was established in 2004 and its objective is primarily to protect planned budgets against shortfalls due to volatile crude oil prices.
The decision to allow the Federal Government to spend the $1 billion was reached at a meeting of the National Economic Council (NEC) presided over by Vice-President Yemi Osinbajo, at the Presidential Villa, Abuja, on Thursday.
Briefing State House correspondents on the outcome of the council meeting, Edo State governor, Godwin Obaseki, said the Governors’ Forum granted the concession to the Federal Government to support its effort at tackling the insurgency.
“The NEC also resolved through the chairman of the governors’ forum to support the effort of the Federal Government in the area of security.
“Pleased with the achievement that has been made till date in the fight against insurgency, particularly in the North-East, the governors of Nigeria through their chairman announced at the NEC meeting that the governors have given permission to the Federal Government to spend the sum of $1 billion dollars in the fight of the insurgency.
“This money is supposed to be taken from the Excess Crude Account.”
Obaseki said the council also discussed the current difficulties in fuel supply in the country and was assured that the situation would normalise in the next 48 hours.
“We also discuss the issue of fuel supply. As you know, there has been challenges of fuel supply in the country.
“The Minister of State for Petroleum Resources assured the council that within the next 48 hours, fuel supply will be restored nationwide because there is enough fuel in our strategic reserves and the ministry has released fuel from these reserves and it expects distribution will reach all part of the country within the next 48 hours,” he said.
The governor stated that the Secretary to Government of the Federation (SGF), in order to have an alliance with states, had decided to organise a retreat for secretaries to the state governments across the federation.
He disclosed that the retreat would hold from 18 till 19th of December.
Also speaking on the NEC outcome, Governor Ibrahim Dankwambo of Gombe State, put the ECA figure as of December 13 at $2.317 billion.
He said the Accountant-General of the Federation, who disclosed this figure to NEC, also informed council that the balance in the Natural Resource Development Fund Account as of December 13 stood at N106.984 billion.
He also said update of the current balance of the Stabilisation Fund Account was also reported by the Accountant-General of the Federation which as of December 13 stood at N7.78 billion.
Dankwambo added that some some of the issues that were considered in the 83rd meeting of NEC which coincided with the 10th meeting in 2017, included the taking of update from the forensic audit of revenue that accrued into the Federation Account up to 2015 and as a follow-up to that report that was submitted last month.
He said the council was informed that KPMG was still conducting the audit of the Nigerian Customs Service and the Nigerian Communication Commission.