Despite global oil prices consistently exceeding Nigeria’s 2024 budget benchmark of $77.96 per barrel, the federal government has failed to deposit surplus earnings into the Excess Crude Account (ECA), leaving the once-vital fiscal buffer nearly empty.

At Thursday’s National Economic Council (NEC) meeting chaired by Vice President Kashim Shettima, the Accountant-General of the Federation, Shamseldeen Ogunjimi, disclosed that the ECA holds just $473,754.57.

Established in 2004 under President Olusegun Obasanjo, the ECA was created to stabilize the economy during oil price shocks. It peaked at over $20 billion during Obasanjo’s tenure but has steadily dwindled, with no remittances recorded since President Bola Tinubu took office in May 2023.“What’s worrying is that this government is repeating the same fiscal indiscipline that has plagued successive administrations,” said Dr. Chika Onyekwena of the Centre for the Study of the Economies of Africa (CSEA).

“We have a mechanism to save, but it’s not being used even when oil prices are favorable. It’s short-sighted and risky.”The neglect of the ECA comes at a time when Nigeria is facing rising inflation, currency volatility, and crippling debt servicing, with public debt hitting N97 trillion as of Q1 2025.

Over 90% of government revenue is now spent on debt repayments.Dr. Sarah Ibe, a fiscal policy expert, warned, “Without a buffer like the ECA, Nigeria would be exposed to exchange rate shocks, inflationary pressures and a further rise in borrowing, which is already at unsustainable levels.”

Critics say the absence of legal safeguards and a lack of transparency has turned the ECA into a political slush fund rather than a strategic reserve.

“The Excess Crude Account is an orphaned fund. No one is truly accountable for its management and that’s a structural problem,” said Eze Onyekpere of the Centre for Social Justice.