Reps - CBN failed to account for $11bn from ECA

Central Bank of Nigeria
Ernest Sunday

The House of Representatives has on Thursday, August 13, 2020, revealed that the Central Bank of Nigeria has failed to account for the $11bn withdrawn from the Excess Crude Account (ECA) for the implementation of the failed National Integrated Power Projects.

According to the Accountant-General of the Federation., the Governor of the Central Bank of Nigeria, Mr Godwin Emefiele refused to give full details of the money withdrawn from the ECA between 2005 and 2007 to finance the National Integrated Power Projects.

The Accountant-General of the Federation revealed this during a hearing which was organised by the House Ad Hoc Committee on Power Sector Reforms as they are responsible for undertaking a holistic review of the power sector and recommend appropriate legislative action to the House.

At the meeting, the Deputy Governor of the CBN, Adebisi Shonubi, who represented Emefiele only gave an account of N1.51tn as Nigerian Electricity Market Stabilisation Facility which was approved and paid out to Nigerian Bulk Electricity Trading Company after it was privatised.

The Deputy Governor disclosed that the apex bank with the Federal Executive Council’s approved, a sum of N213bn.

He added that N189.1bn had been released while the remaining N60.8bn were repaid to operators who accessed the fund through NBET.

The Central Bank also approved the sum of N701 billion for Nigeria Electricity Market Stabilisation Facility with which N694.98bn had been paid out as of December 2018.

The CBN Governor said that from the N600bn approved for NBET, a total amount of 85.41bn had been paid out based on the company's advice. 

The apex bank stated the reason for releasing the fund saying it was with a view of enabling new investors to clear the legacy debts inherited from the non-functioning Power Holding Company of Nigeria before its privatisation.

Shonubi confirmed that all the intervention fund released by the Central bank were all 100 per cent granted by the Federal Ministry of Finance.

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