$1 billion was approved by the National Economic Council from the Excess Crude Account (ECA) to enhance security, the Minister of Finance says.
State governors in consultation with the national economic council are aware of withdrawals from the ECA, the Minister of Finance Dr Zainab Ahmed said at the Federal Executive Council.
The federal government in a statement disclosed that the ECA’s balance decreased from $35.37 million to $376,655 in June but provided no further information at the conclusion of the FAAC meeting for July.
The Excess Crude Account represents the difference between the market price of crude oil and its budgeted price in Nigeria.
Dr Zainab also presented a 3-year draft expenditure framework for the country, pegged at assumed crude oil prices of $70 per barrel for 2023, $66 for 2024, and $62 for 2025.
She explained that the estimated production rate had been fixed at 1.69 million barrels per day for 2023 and 1.813 million barrels per day for 2024 and 2025.
The minister also said the projected nominal GDP, and the size of Nigeria’s economy would rise to ₦225.5 trillion, with 95% of the contribution coming from the non-oil sector, while the oil sector would contribute only 5%.
Nigeria will witness a steady increase from 2024 to 2025 that will reach up to over ₦280 trillion in 2025, giving Nigeria the edge to continue to retain her position as the largest economy in Africa, she said.
The minister of finance said the 2022 budget, till April, performed very well with steady growth in the economy for five consecutive quarter.