The Fiscal Responsibility Commission has said that the Federal Government withdrew the sum of N359.39bn from the Excess Crude Account in 2015 to fund the payment of petroleum products subsidy in 2015, The Punch reports.
The FRC said this in a report on the Excess Crude Account. According to the FRC, the withdrawal of N359.39bn to fund subsidy on petroleum products was illegal because it contravened the purpose for which the ECA was set up.
However, the report noted that for the first time, the government withdrew N98.19bn from the ECA to share among the three tiers of government after satisfying the condition stipulated for withdrawing money from the account.
It said the withdrawal was the first time the three tiers of government were sharing money from the ECA when oil prices fell below the budget benchmark in three successive months, indicating that the governments had been sharing money from the account even when the oil prices were above the benchmark.
To show how low the fortune of the country had fallen, the report said the total remittance into the ECA in 2015 amounted to only N48.94bn compared to N796.7bn paid into the account in 2014.topics from