Governor Nasir El Rufai of Kaduna state has explained why former president of Nigeria, Olusegun Obasanjo established the Excess Crude Account during his administration.
“It was part of the administrative arrangement to save for a rainy day,” El Rufai said of the Excess Crude Account.
El Rufai stated this on Monday after a four-man committee was constituted to to examine the accruals into and withdrawals from the Federation Account and the Excess Crude Account from 2012 to May 2015.
ElRuafi alongside Governor Adams Oshimhole of Edo, Governor Abdulaziz Yari of Zamfara and Governor Emmanuel Udom of Akwa Ibom make up the committee.
He noted that the account was meant to have very clear accountability so that every state and the local government at any point in time will know the balance in the account.
He said that before any money would be spent from the account, the Federal and States needed to agree.
“That was how we agreed to build the seven power stations that are NIPPs today.
“We also met and agreed to build the Lagos-Kano Standard Guage Railline from the account; but what we have seen in the last few years is that the account is being operated unilaterally by the Federal Government.
“Drawings were being made without consulting those that actually own the money,” he said.
The account is 52 per cent under the FG and 48 per cent owned by the states and the local governments.