Bittersweet year-end: Naira plunges to record low, Excess Crude Account rises to $2.257bn

After selling for N269 against the United States dollar on Wednesday, the Nigerian currency- naira -crashed further on Thursday, to N280 at the parallel market.

The recent decline of the naira is as a result of the Central Bank of Nigeria’s decision to stop the sale of foreign exchange to over 1,600 Bureau De Change operators.

According to the apex financial institution in the country, the affected Bureau De Change operators, had improper documentation.

Also, the weekly forex sale to BDCs by the CBN crashed to $23 million from $84.5m, hence the pressure on the naira at the parallel market.

In spite of the unpalatable fate of the naira, Nigeria’s Excess Crude Account (ECA) increased by over $599 million between July and November.

The increase in the ECA was disclosed on Thursday, at the National Economic Council (NEC) meeting, which held at the presidential villa in Abuja.

Darius Ishaku, governor of Taraba state, spoke to journalists after the meeting, stating that the ECA currently stands at $2.257 billion.

Ishaku said Ahmed Idris, the accountant-general of the federation(AGF) briefed the NEC on the state of the ECA.

“We were briefed on the reports of the excess crude proceeds. The accountant-general of the federation (AGF) reported to council that the ECA stood at $2.257 billion as at the end of November, 2015,”

“He (AGF) also reported a slight change against the previous balance with an interest which is due of $599,137,467 into the account as at accrued interest.

“We were also briefed on the report of the federal government’s agencies that are collecting revenue in foreign currency and are remitting the monies in naira equivalent into the federation account, which is not allowed.

“So, the ministry of finance is working on the details to pass it to the council with a comprehensive report on the agencies that are involved, which will later be made known to the public.”

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