FG non-oil savings rise by N4tn

The Federal Government’s savings in its non-oil excess account increased by 304.1 per cent in the first year of the current administration. This is according to an analysis of the monthly Federation Allocation Accounts Committee report released by the National Bureau of Statistics between July 2022 to June 2023 and July 2023 to June 2024. The NBS stated that a total of N1.36tn was paid into the account between July 2022 and June 2023, while N5.48tn was disbursed in one year under President Bola Tinubu’s administration, indicating an increase of N4.12tn or 304.1 per cent within the review period. The ECA, similar to the structure of the Excess Crude Account, is an account created to save the extra funds made anytime the country made excess revenue from non-oil exports fuelled by the unification of the foreign exchange market and fuel subsidy removal. The savings account domiciled with the Central Bank and managed by the Office of the Accountant General of the Federation is utilised when revenue is low. Established in 2004 by former President Olusegun Obasanjo, the ECA functions as a natural resource fund, primarily serving as a fiscal buffer during economic downturns. Click here for more.