| From 234next.com: The excess crude account (ECA) was created in 2003 out of desperation to mitigate the boom and burst cycle that has characterised Nigerian economy since the first oil boom in the 1970s.
Rather than subject the economy to the vagaries of the international oil price fluctuations, putting away surplus earnings above the budget benchmark was seen as a veritable way of protecting the economy during any shortfall. The account was meant to achieve macroeconomic stability by controlling money supply and ensuring that something is kept aside for the lean years................................................Full Article: Source
|