Economy
Nigeria’s Excess Crude Account, Once Over $22bn, Depletes to $321m
By Dipo Olowookere
The balance left in the Excess Crude Account (ECA) of Nigeria as at Monday, January 20, 20120 was $321.4 million, Business Post has gathered.
Last week, the National Economic Council (NEC) held a meeting in Abuja, which was presided over by Vice President Yemi Osinbajo. The council comprises Governors of the 36 states of the federation, the FCT Minister and Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele.
At the gathering, NEC was informed of the amount left in the ECA and other special accounts of the federation, including the stabilization account, which stood at N31.8 billion as at Tuesday, January 21, 2020; the Development of Natural Resources Account, which had N97.0 billion as at January 21, 2020; and the Budget Support facility deduction which was in progress with N29 billion so far remitted to the CBN.
Business Post reports that the ECA was created by the administration of former President Olusegun Obasanjo in 2004 to keep the extra amount made from the sale of crude oil’s benchmark.
For instance, like in the 2020 budget, where the crude oil benchmark was set at $60 per barrel, anytime the commodity is sold above $60, the excess is saved in the ECA for rainy days and this helped the country during the 2008 global financial meltdown as it was not felt by Nigeria.
However, the tradition of not touching the ECA was broken under the administration of late Umaru Yar’Adua, when Governors under the aegis of the Nigerian Governors Forum led by former Senate President and then Governor of Kwara State, Mr Bukola Saraki, instituted a lawsuit at the Supreme Court in 2008 to seek an injunction to force federal government to share what is left in the account.
When Mr Obasanjo handed over power to late Mr Yar’Adua in 2007, according to the Ministry of Finance, the balance in the ECA was $9.43 billion and in 2008, he grew the amount to over $22 billion, the highest ever in Nigeria’s history. However, he passed on in 2010 and his deputy, former President Goodluck Jonathan, was sworn in as an acting President in May 2010.
Under the Jonathan administration, the ECA depleted as a result of his heeding to the demand of the Governors and it was reported that the amount decreased to about $4 billion by 2010.
In 2015, when the present administration of President Muhammadu Buhari commenced, the sum of $2 billion, according to a former Minister/Deputy Chairman of National Planning Commission, Mr Abubakar Olarenwaju Sulaiman, was left by the Jonathan government for Mr Buhari.
In 2016, when the state Governors asked the Buhari administration to share the ECA, what was then left was about $2.3 billion.
In 2018, during a briefing with newsmen in Abuja on outcome of the NEC meeting, Governor of Kano State, Mr Abdullahi Umar Ganduje, said the former Minister of Finance, Mrs Kemi Adeosun, informed the council that as at Monday, January 15, 2018, the amount left was $2.3 billion and Mrs Adeosun later said in June of same year, 2018, that the balance had declined to $1.9 billion. This was after government had removed $1 billion from the account to fight terrorism in the country despite opposition from the opposition party, the Peoples Democratic Party (PDP).
As at October 2019, the amount left in the ECA was $324 million, but according to NEC, in an update of its last meeting in Abuja, the money has now reduced to $321 million.
During the meeting, Chairman of the NEC Committee on the matter and Governor of Kaduna State, Mr Nasir El-Rufai, briefed the council on the proposed consideration of 20 percent of pension funds to be invested in infrastructural projects such as rail, roads and electricity.
On the review of the status of the ownership structure of the electricity power Distribution Companies (DISCOs), he said plans were ongoing to determine the level of investment/ownership of states and federal governments in the Discos, and requested NEC to, among other things, place media advertisements for the public to submit memoranda on the way forward for the electricity sector.
NEC approved the prayers of the Committee that stakeholders in the sector be engaged, and that submissions from the public be received for analysis.
Also briefing NEC on polio eradication and improved routine immunization in Nigeria, the Minister of Health, Mr Osagie Emmanuel Ehanire, said Nigeria was on course to attaining polio-free status by June 2020, noting that the country has not recorded any new case of polio infection in the last three and half years.
He said there are incidences of Lassa Fever in some states namely; Edo, Kano, Ondo, Ebonyi and Taraba resulting in 84 cases and 15 deaths, noting that the National Centre for Disease Control has been alerted and is on top of the situation.
Mr Ehanire reported to council that the use of paracetamol to cook meat and the consequences that comes with it as well as the use of Aspirin to purify water, are deadly practices that damages major body organs, warning that these practices should be avoided.
He also briefed council on the Coronavirus that emerged in China, which has spread to four border countries such as United States of America, Thailand, Japan and Korea.
During his presentation, the Emir of Kano, Muhammadu Sanusi II, made the presentation to the council in his capacity as the Chairman of the Board of Trustees of the Nutrition Society of Nigeria.
Mr Sanusi, who titled his presentation a Call for Action, said “over 12 million children are stunted in Nigeria, while 2.6 million are wasted annually due to malnutrition,” adding that Nigeria records the highest number of stunted children in Africa.
According to the monarch, malnutrition accounts for 53 percent of deaths among children as high child mortality and stunting are linked to deficiencies in key micronutrients (vitamin A, Iron, Zinc and Calcium), macronutrients (Carbohydrates, Protein, Fats) and associated poor feeding practices, as well as overall nutritional status of the mother.
The Emir, who stated that the burden of malnutrition which include stunting, under-weight, obesity and other diet related non-communicable diseases, can be treated, said, “65 percent of dietary energy supply is derived from cereals, roots and fibres indicating low dietary diversity.”
Continuing, he said basic causes of malnutrition are poverty, socio-cultural, economic and political environment.
At the gathering, NEC appealed to states and local governments to deal with the problem by investing more in issues relating to malnutrition, adding that states should key into the World Bank sponsored programme on nutrition.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited returned to winning ways on Tuesday after it closed higher by 2.30 per cent amid cautious trading.
Yesterday, investor sentiment at the Nigerian stock market was weak after finishing with 37 price gainers and 40 price losers, indicating a negative market breadth index.
It was observed that the industrial goods sector rose by 4.86 per cent, the energy index appreciated by 4.66 per cent, and the consumer goods segment soared by 2.74 per cent. They offset the 1.38 per cent loss recorded by the banking counter and the 0.20 per cent decline printed by the insurance sector.
At the close of business, the All-Share Index (ASI) was up by 5,137.90 points to 228,740.19 points from 223,602.29 points, and the market capitalisation went up by N3.308 trillion to N147.278 trillion from N143.970 trillion.
The trio of FTN Cocoa, Industrial and Medical Gases, and Lafarge Africa gained 10.00 per cent each to sell for N5.50, N39.60, and N324.50, respectively, while Austin Laz grew by 9.71 per cent to N3.73, and Aradel Holdings jumped 9.52 per cent to N1,840.00.
On the flip side, UBA lost 10.00 per cent trade at N44.55, Trans-Nationwide Express slipped by 9.99 per cent to N6.40, NASCON crashed by 9.18 per cent to N187.90, Jaiz Bank depreciated by 8.93 per cent to N8.01, and Berger Paints crumbled by 8.66 per cent to N68.00.
Yesterday, market participants traded 908.0 million equities valued at N68.2 billion in 72,886 deals compared with the 678.2 million equities worth N44.1 billion transacted in 82,838 deals on Monday, showing a drop in the number of deals by 12.01 per cent, and a spike in the trading volume and value by 33.88 per cent and 54.65 per cent, respectively.
By Adedapo Adesanya
Nigeria’s oil production recorded a five-year high of 1.71 million barrels per day, marking a significant rebound for the country’s upstream sector amid renewed efforts to restore output and improve operational stability.
The latest figure, released by Nigerian National Petroleum Company (NNPC) Limited, covers the period from April 2025 to April 2026 and underscores a steady recovery in crude production after years of disruptions caused by theft, pipeline vandalism and underinvestment.
According to the chief executive of the national oil company, Mr Bayo Ojulari, the performance reflects measurable progress across the company’s upstream, gas and downstream operations, with production gains supported by improved asset management and stronger field performance.
Within its exploration and production business, NNPC recorded a peak daily output of 365,000 barrels in December 2025, the highest level ever achieved by its upstream subsidiary. The company also advanced key contractual reforms, including revised production-sharing terms for deepwater assets aimed at unlocking additional gas reserves.
Nigeria’s gas ambitions are also gaining traction. Gas supply rose to 7.5 billion standard cubic feet per day in 2025, driven by major infrastructure milestones such as the River Niger crossing on the Ajaokuta-Kaduna-Kano pipeline and the commissioning of the Assa North-Ohaji South gas processing plant.
These investments are beginning to strengthen domestic gas utilisation. New supply agreements with major industrial consumers, including Dangote Refinery, Dangote Fertiliser and Dangote Cement, are expected to deepen gas penetration across manufacturing and power generation.
On the downstream front, NNPC has continued crude supply to Dangote Refinery under the crude-for-naira arrangement, a policy designed to reduce foreign exchange demand, support local refining and improve fuel market stability. The company also reaffirmed its 7.25 per cent equity stake in the refinery as part of its long-term energy security strategy.
Financially, the national oil company said it has resumed full monthly remittances to the Federation Account since July 2025. It has also reinstated regular performance reporting and held its first earnings call, moves widely seen as part of a broader push towards greater transparency and corporate accountability.
Despite the progress, challenges remain. Crude theft, pipeline outages and infrastructure bottlenecks continue to threaten production stability. Sustaining this recovery will depend on stronger security, reliable infrastructure and policy consistency as Nigeria seeks to maximise the benefits of rising domestic refining capacity.
By Adedapo Adesanya
The United Arab Emirates has announced its decision to quit the Organisation of the Petroleum Exporting Countries (OPEC) to focus on national interests.
This dealt a heavy blow to the oil-exporting group at a time when the US-Israel war on Iran had caused a historic energy shock and rattled the global economy.
The move, which will take effect on May 1, 2026, reflects “the UAE’s long-term strategic and economic vision and evolving energy profile”, a statement carried by state media said on Tuesday.
“During our time in the organisation, we made significant contributions and even greater sacrifices for the benefit of all,” it added. “However, the time has come to focus our efforts on what our national interest dictates.”
The loss of the UAE, a longstanding OPEC member, could create disarray and weaken the oil cartel, which has usually sought to show a united front despite internal disagreements over a range of issues from geopolitics to production quotas.
UAE Energy Minister Suhail Mohamed al-Mazrouei said the decision was taken after a careful look at the regional power’s energy strategies.
“This is a policy decision. It has been done after a careful look at current and future policies related to the level of production,” the minister said.
OPEC’s Gulf producers have already been struggling to ship exports through the Strait of Hormuz, a narrow chokepoint between Iran and Oman through which a fifth of the world’s crude oil and liquefied natural gas supplies normally pass, because of threats and attacks against vessels during the war.
The UAE had been a member of OPEC first through its emirate of Abu Dhabi in 1967 and later when it became its own country in 1971.
The oil cartel, based in Vienna, has seen some of its market power wane as the US has increased its production of crude oil in recent years.
Additionally, the UAE and Saudi Arabia have increasingly competed over economic issues and regional politics, particularly in the Red Sea area.
The two countries had joined a coalition to fight against Yemen’s Iran-backed Houthis in 2015. However, that coalition broke down into recriminations in late December when Saudi Arabia bombed what it described as a weapons shipment bound for Yemeni separatists backed by the UAE.
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