Resting the Excess Crude Account controversy – The Sun

The lingering impasse between the Federal Government and state governors over the former’s alleged unilateral management of funds in the Excess Crude Account (ECA) became stickier last week as the state chief executives, under the aegis of Nigerian Governors Forum (NGF), demanded full disclosure from the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on the disbursement of an alleged $20bn from the account.
Last week’s meeting was the first time in two years that the governors would be speaking with one voice on the platform of NGF. In a statement issued at the end of their meeting presided by Governor of Rivers State, Chibuike Amaechi, the Forum claimed that the amount was paid into the ECA between June 2013 and April this year. The argument of the NGF is that since the funds in the ECA were last disbursed in May 2013, there was a need for the Minister of Finance to explain what happened to the accruals to the account from June, 2013 to April, 2015.
But in a swift reaction, the Finance Minister debunked the claims of the NGF. In a statement issued by her media office, she described the governors’ demand as “totally strange”.  The minister explained further that since issues relating to the management of the ECA were usually discussed by State Commissioners of Finance who represent their governors at the monthly Federation Accounts Allocation Committee (FAAC) meetings, the NGF request for other explanations on the matter was unnecessary.
Altogether, the Finance Minister said that there was “nothing hidden” on the ECA, and that details of accruals to the Fund would be published “within the next few days”, including all allocations to the three tiers of government in the last four years.
Let the Finance Minister keep to her promise to publish details of the accruals to the ECA as quickly as possible so that this controversy can be permanently laid to rest. It is rather unfortunate that the disagreement between the Federal Government and state governors over the ECA has remained unresolved for this long. We recall that in November 2013, a similar allegation was made that $5bn was missing from the ECA. The Federal Government’s failure to make full disclosure of the accruals and disbursements from this account is at the root of the unending allegations. With a new administration about to be sworn-in on May 29, we urge the Finance Minister to provide the necessary information that will finally rest the ECA controversy.
With the cash crunch at all levels of government in the country, it is not surprising that the vexed issue of ECA disbursements has resurfaced. Nonetheless, all the parties to the dispute should work towards its quick resolution. This is apparently what the Supreme Court had in mind when it called on both parties to resolve the matter out of court. Sadly, that has not happened.
To put the ECA issue in proper perspective, it is important to say that while we appreciate the wisdom of the Federal Government in advocating the saving of oil revenue in excess of the budget benchmark in the ECA to meet exigencies of “rainy days”, we are not unmindful of section 162 of the Constitution, which provides for the payment of all revenue accruing to the nation into the Federation Account, from where it would be disbursed to the three tiers of government.
The position of the Federal Government is contrary to this constitutional provision, which supports the concept of federalism, that states are distinct and autonomous arms of government, not appendages of the Federal Government. This position also enjoys the support of the Supreme Court. The exigencies of the times have made full disclosure on the ECA compelling. The present controversy on the matter helps neither the Federal Government nor the state governors.
Since the position of the law is that the funds in the ECA should be shared, there is need for sincere and full disclosure of the actual accruals, disbursements and the balance of sums in the account. This information should not be delayed any further.