Nigeria’s Excess Crude Account Depletes to $535,823, Says Accountant-General

Nigeria’s Excess Crude Account (ECA), which was created in 2004 as a fiscal buffer to safeguard the nation against oil price volatility, has dwindled to just $535,823.39, according to the Accountant-General of the Federation, Shamseldeen Ogunjimi.

The disclosure was made during the National Economic Council (NEC) meeting held on Thursday at the Presidential Villa, Abuja, and chaired by Vice-President Kashim Shettima.

Represented at the session by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the Accountant-General also provided updates on other key federation accounts, noting that the Stabilisation Account currently stands at ₦78.45 billion, while the Natural Resources Account holds ₦106.73 billion.

The ECA, established during the administration of former President Olusegun Obasanjo, was designed to save oil revenues above the budgeted benchmark price and serve as a rainy-day fund. However, successive governments have consistently drawn from the account to finance budget deficits, fund projects, and meet urgent fiscal needs, a practice that has left the account almost depleted.

The present balance of barely over half a million dollars represents one of the lowest levels recorded since the account’s inception, sparking concerns among economic experts and political leaders.

Economists warn that with such a meagre balance, Nigeria has little to fall back on in the event of another global oil price crash or an urgent financial shock.

They argue that the state of the ECA exposes the country’s fragile fiscal position and highlights the dangers of overreliance on oil revenues. Analysts have further stressed the need for urgent reforms to diversify the economy, expand the non-oil revenue base, and implement stricter measures to safeguard any future savings in the account.

At the NEC meeting, governors reportedly expressed concern over the depleted balances and pressed for more transparency and accountability in the management of federation accounts.

They emphasised the importance of rebuilding fiscal buffers at a time when the nation continues to grapple with rising inflation, high debt servicing obligations, and declining oil production. Opposition figures and civil society organisations have also criticised the depletion of the ECA, insisting that the federal government must explain how previous withdrawals were utilised and outline a credible plan for replenishment.

The possibility of rebuilding the ECA largely depends on improved oil earnings, as the account is typically funded when crude oil sells above the budgeted benchmark price. However, Nigeria’s consistent struggles with crude production shortfalls and subsidy-related expenses have hampered efforts to save in recent years.

With the balance now at just $535,823, the federal government faces mounting pressure to pursue bold fiscal and structural reforms to strengthen public finance management, reduce reliance on borrowing, and create a sustainable savings mechanism for future stability.