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Governors ask Okonjo-Iweala to account for $20bn excess crude account

By BusinessNews Staff on May 21, 2015

Governors of the 36 states of the federation under the aegis of the Nigerian Governors’ Forum (NGF) have called on Ngozi Okonjo-Iweala, the finance minister and coordinating minister for the economy, to account for over $20 billion excess crude account.

The money, they hinted, accrued from June 2013 to April 2015.

This decision was reached at a meeting of the NGF held in Abuja. The meeting which started at 9:35p.m on Monday ended about 1:05a.m on Tuesday with governors from both the Rotimi Amaechi and Jonah Jang factions in attendance.

This is the first time both factions are meeting under one umbrella since the May 24, 2013 election crisis where 16 was greater than 19.

Addressing journalists after the closed door meeting, the outgoing chairman of the forum and Rivers State governor, Rotimi Amaechi, revealed that funds in the excess crude account were last disbursed in May 2013.

“In the light of the fact that funds in the excess crude were last disbursed in May 2013, there is need for the minister of finance and coordinating minister for the economy, Ngozi Okonjo-Iweala, to provide explanation for accruals to this account from June 2013 to April 2015 which is estimated at over $20 billion,” he stated.

The excess crude account was established in 2004 and aimed to protect planned budgets against shortfalls due to volatile crude oil prices. The excess crude account was to insulate the Nigerian economy from external shocks.

In 2010, Nigeria’s National Economic Council approved a plan to replace the excess crude account with a national Sovereign Wealth Fund.

Amaechi also disclosed that the body has reconciled all its differences and “reunited as a single umbrella association regardless of party or region”.

The group, he said, has put the election crisis of May 24, 2013 behind it. Also at the meeting, Zamafara State governor, Abdullazeez Yari, emerged as the new chairman by consensus for a one-year period – May 2015 to May 2016.

He replaces Amaechi whose tenure ends on May 29.

Similarly, an induction programme for new and returning governors aimed at equipping them with global best practices will hold next month, just as a Governors’ Forum Academy christened The Leadership Academy which will be responsible for capacity building of governors and overseen by the NGF secretariat will be established. Present at the meeting were governors of Rivers, Edo, Awka Ibom, Delta, Osun, Edo, Oyo, Kano governor-elect, Benue, Kwara,
Kebbi, Bauchi, Kaduna, Borno, Zamfara as well as deputy governors of Kogi, Imo.

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