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Nigerian currency appreciate, crude account hits $2.33b

The Naira has appreciated to N362.32 per dollar in the Investors and Exporters (I&E) window just as Excess Crude Account also climbs.

Also the volume of dollars traded rose marginally by 92 per cent.

Data indicative exchange rate for the window dropped to N362.32 per dollar on Thurdsay from N363.06 per dollar on Wednesday, indicating 74 kobo appreciation of the Naira.

The volume of dollars traded on the window rose by 92 per cent to $252.66 million from $131.82 million traded on Wednesday.

However, the Naira remained stable at N359 per dollar in the parallel market.

The Excess Crude Account where oil earnings over and above the benchmark price of Crude oil is deposited now has $2.33 billion in it’s vault.

Mr. David Edevbie, Delta State Commissioner of Finance, was on Thursday appointed to chair the committee to resolve controversy surrounding the management of the Account.

The Minister of Finance, Mrs. Kemi Adeosun, confirmed the development while briefing journalists shortly after the August meeting of FAAC members.

She also said the committee that was set up to carry out a comprehensive review of the reporting template of the Nigerian National Petroleum Corporation would submit its draft report to the committee next month.

Adeosun said that the ECA committee was saddled with the responsibility of coming up with rules that would guide the credit of funds into the account.

In recent times, the management of the ECA had been a subject of controversy between the federal and state governments.

For instance, the withdrawal of about $1 billion and another $496 million from the ECA by President Muhammadu Buhari without the constitutionally required legislative appropriation had sparked outrage from some states and opposition political parties.

The funds were used to intensify the fight against Boko Haram and acquire military aircraft from the United States.

But Adeosun said, “The other matter discussed was progress on the new template that is being developed with the NNPC and the federation account and we are optimistic that we will have a draft before the next meeting.

“A committee has also been set up under the chairmanship of the Commissioner for Finance in Delta State to come up with rules surrounding the excess crude to ensure that we have a rules-based credit into the Excess Crude Account. They also intend to report back in the next meeting.”

The meeting also superintended the sharing of N714.8 billion among the three tiers of government for the month of July with the Federal Government receiving N298.28 billion, states N183.77 billion while the local governments would share a total of N138.96 billion.

In addition, she said the sum of N49.77 billion was shared to the oil producing states based on the 13 per cent derivation principle while the revenue generating agencies’ revenues were allocated the sum of N44 billion as cost of revenue collections.