The Nigerian Senate,Tuesday, suspended the Excess Crude Account (ECA), describing it as “illegal” and a window for operating revenue of the federation without legal backing and without checks and balances.
The ECA was set up in 2004 to provide savings for the country and stabilisation for the economy during periods of shortfalls in oil revenue.
But, the Senate frowned at the operation of the account since its inception, thereby raising the alarm that it was the most poorly managed account in the whole world.
The Red Chamber held that, since there was no single constitutional provision or backing of any known law in Nigeria, the operation of the ECA was at whims of the executive arm of government.
In a motion sponsored by Senator Rose Oko (Cross River North) and 42 other Senators, the upper legislative chamber directed that any amount above the oil benchmark should be paid into the federation account, in accordance with the constitution.
According to Oko, “it was reported that the ECA increased from $5.16 billion in 2005 to oover $20 billion in 2008, and increased to less than $4 billion by 2010 with no known tracking of its operations.
“At various times and from several quarters in 2013, it was purported that $5 billion was missing from the ECA, and that $2 billion was withdrawn without authorization.
“These accusations between tiers of government portrays a financial system that is flawed and without probity”.
The lawmaker argued that the ECA was alien to the 1999 constitution and not in tandem with section 80 (1-4) and 162 (1-3) of the constitution, which prescribes revenue receipts and expenditure.
The Upper Legislative Chamber therefore, passed a resolution for its abolition and warned the executive arm “to act in conformity with sections 80 (1-4) and 162(1-3) of the 1999 constitution as amended, in its revenue receipt and expenditure”.
However, there was a mild drama when, a prayer was moved that, an Adhoc Committee should be mandated to investigate the revenue that accrued from the amount above the oil benchmark from 2004 to date and its utilisation, with the lawmakers kicking against it.
The Senators, some of whom were Governor in various states and probably, presided over the disbursements of the revenue from the ECA since inception, overwhelmingly voted against it when the questioned was posed by the Senate President, Bukola Saraki.
