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By Joel Anekwe
The Musa Yar’Adua Foundation has called for the merger of the Excess Crude Account (ECA) with the Sovereign Wealth Fund (SWF), even as it condemned the continued illegal withdrawals by successive federal administrations from the ECA.
The foundation which made the call Monday in Port Harcourt at a one day round-table on ‘A Savings and Stabilization Mechanism for Nigeria,’ claimed that successive federal administrations, between 1999 and 2018, have all been guilty of illegal withdrawals which it largely blamed for the missing amount meant to be saved for rainy days.
It also stated that due to the opaque system of administration of the ECA by these administrations, the country cannot account for a whopping $82.5-billion about N10-trillion that accrued to the Excess Crude Account (ECA) for over a period of 10 year
The foundation said that a survey of excepts indicted the various administrations, from the Obasanjo to the present one, adding that what was happening under Goodluck Jonathan and Olusegun Obasanjo is still happening under Muhammadu Buhari in terms of unauthorised withdrawals from the ECA.
The Abuja-based group further called for a review of the Niger Delta Master Plan and its immediate implementation so as to replace the economy of the region before oil runs out.
They also warned that unless Nigeria adopted total transparency in withdrawal from the ECA, the loss of over N10 trillion in the past 10 years would mean that Nigeria stands the risk of losing even more in the next decade.
In a startling report presented by Aisha Haruna, an economist, the foundation noted that Buhari’s administration withdrew 52 per cent from the ECA without it showing in the only place required by rule for it to be recorded, the Federation Accounts and Allocation Committee (FAAC).
She said though the Buhari regime withdrew very little but the percentage was high too, showing that if much was saved, much would also have been withdrawn without due process.
The right way of withdrawing, she stated, was for all extras to be saved and then request for withdrawal to be tabled and recorded in FAAC so that the other two tiers of government that also have shares in the ECA would be accommodated.
The panel said in Port Harcourt that allowing unapproved withdrawals would create room for fraud, adding that the rule must be followed. Some of the reasons given for withdrawing from the ECA under Jonathan were given as fight against Boko Haram while same reason was given by the Buhari administration which she said unilaterally withdrew $1bn.
As a way out, the foundation, through the coordinator, Amara Nwankpa, called for immediate halt to unauthorised withdrawals and a merger of all the financial stabilization funds including the ECA under one account, the SWF.
The coordinator said the SWF was more difficult to withdraw from and yields interest to the Federal Government.
An expert, Andrew Onyeanakwe, debunked the fear that saving at a low rate in the SWF while borrowing at higher rate to run the budget may not be sound financial thinking.
He explained the SWF would generate profit which the FG can depend on instead of loans. Another expert, Jide Ojo, said diversification of the oil industry to maximize profit would reduce need to break into ECA or the SWF. He said Nigeria was simply exporting jobs by relying on crude oil alone.
