Okonjo-Iweala unable to account for $1.03b ECA fund, as subsidy gulps N1.4t

The Senate on Monday differed with the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on the amount that has accrued to the Excess Crude Account this year, even as it emerged that government may have spent a whopping N1.4 trillion on fuel subsidy.
From the argument between a member of the Joint Senate Committee of Finance and Appropriations, Senator Ita Enang, and Okonjo-Iweala, it also came to the fore that about $1.03 billion might be missing from the ECA account.
The Joint Committee meeting is holding to appraise the 2013 budget as it affects the Federal Revenue-Generating Agencies.
The nation’s Excess Crude Account is domiciled in the Central Bank of Nigeria but managed by the Federal Ministry of Finance.
Enang, who also chairs the Rules and Business Committee of the Senate, had said that from records available to the committee, $14.06 billion was inflows to the ECA while $9 billion is outflow, leaving a balance of $5.06 billion.
But the Minister, who also doubles as the Coordinator of the Economy, was not forthcoming in disclosing how much has accrued to ECA but said there is a balance of $4.03b.
According to Okonjo-Iweala, the balance in the ECA stands at $4.3 billion, adding that the “primary use is in the payment of oil subsidy for the country….
“Money goes in and comes out almost immediately.
“It’s a federation account matter.
“It belongs to all tiers of government.
“When we pay subsidy, it belongs to all tiers of government.
“So, the FG, states and local governments are all partakers.”
But Enang immediately countered it, insisting that from records available to them, the ECA has a balance of $14.06 billion as inflow while outflow reflects $9 billion.
On the status of the Sovereign Wealth Fund, the Minister said: “The SWF has $1 billion.
“There have been no further payments into the SWF as far as I know.”
On the issue of subsidy payment on kerosene, the Minister pointedly denied knowledge of such, saying the Nigeria National Petroleum Corporation would be in a better position to explain that.
The Chairman, House Committee on Petroleum Downstream, Hon. Dakuku Peterside, had last week disclosed that government has paid N634 billion to subsidise kerosene in the last three years.
The breakdown, according to Peterside, shows that about N110 billion was spent in 2010, N324 billion in 2011 and N200 billion was expended in 2012.
No figure was given for 2013.
When probed further by another member of the committee, Senator Bukola Saraki, Okonjo-Iweala insisted that any outflow from the ECA was used to pay for PMS subsidy and not kerosene.
She said: “Payment is for PMS only.
“It doesn’t include kerosene.
“I think NNPC should answer the question on subsidy for kerosene.”