With controversy all over Nigeria the Central Bank of Nigeria has announced a depreciation on annual report for 2018, The financial organisation said Nigeria’s crude excess account fell from $2.45 billion in 2017 to $480 million as of December 2018.This is as a result of $1 billion military spending which was withdrawn from Nigeria’s Excess Crude
ECA stood at $3.32 billion in 2014 and has continued to drop. Specifically, between 2014 and 2018, crude excess account dropped by 85%, from $3.32 billion to $480 million respectively.
This means that about $2.84 billion have been withdrawn by the government since that peak.
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Recently President Muhammadu Buhari was accused of mismanaging the country’s Excess Crude Account especially the $1 billion reportedly spent on military equipment.
Major General Babagana Monguno Gen. Babagana who was the retired National Security Adviser (NSA) disclosed that he was not aware of the whereabouts or disbursement of the $1billion drawn from the ECA by the Buhari presidency in 2017 for security purposes.
The Senior Special Assistant on Media and Publicity, Garba Shehu, disclosed that various procurements had been made for the purchase of critical equipment for the Nigerian Army, the Nigerian Navy and the Air Force.
According to Garba Shehu;
“The record we have is that the Buhari’s administration paid $496 million for a dozen Super Tucano fighter aircraft for the Air Force in a direct, government-to-government (no contractors or commission agents) transaction with the government of the United States of America. They are due for delivery in 2020.”
“Various other military procurements for critical equipment have been made. These are for the Nigerian Army and the Nigerian Navy, amounting to $380.5 million. These procurements include money for the purchase of Navy Lynx helicopters.”
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“The total amount spent so far is $876.8 million. The equipment paid for has due dates of delivery of between six months to two years. Balance of the money that is unspent as at today is $123.1 million.”
“The entire expenditure involved in these exercises is on the basis of government-to-government procurement. In cases where the Nigerian government dealt with equipment manufacturers, their home governments have in all cases given guarantees to the Federal Government.”
“Again, it is important to stress that no contractors or commission agents have been involved in the procurements under discussion.”