The House of Representatives yesterday mandated its Committee on Finance to probe the Excess Crude Account (ECA).
The audit, according to the House is to tabulate the accruals to each state against the background of the approval for the removal of $1 billion from the Excess Crude Account by the National Economic Council, to fight Boko Haram insurgency.
The resolution of the House came via a motion sponsored by Hon. Ken. Chikere ( PDP Rivers), which urged ” the Federal Ministry of Finance to ensure that the sum representing 13 per cent of the $1 billion approved by the National Economic Council on 14 December, 2017 to fight Boko Haram insurgency is deducted and paid to oil producing states in Nigeria in compliance with section 162(2) of the 1999 constitution.”
The benefitting states, he said, are: “Akwa Ibom, Rivers, Delta, Bayelsa, Cross Rivers, Edo, Abia, Imo, Ondo, Anambra and Lagos.”
But the motion caused an uproar on the floor of the Green Chamber yesterday.
Many questions were also raised on the floor on who the $1 billion really belongs to and how much is in the Excess Crude Account.
Also the issue became controversial as members took opposing positions on the motion; those from the Southast were in support of the motion and those from the North were strongly against the motion.
Hon. Shehu Garba ( APC Kaduna) opposed the motion, saying that the issue of Boko Haram insurgency is a national problem because it challenges the sovereignty of Nigeria, adding that no state can claim immunity to the consequences.
“We must accept that it is a national challenge. If it is, we will all have to sacrifice. Otherwise, I will have to claim that the share on my state also be set aside. I disagree with this motion,” he said.
The Chairman of the House Committee on Rules and Business, Orker Jev was inclined to stepping the motion down, saying it lacked facts and therefore dilatory.
“From what has transpired, the motion is bereft of conclusion. Order 9(6) disallows the House from entertaining such motions,” he said.
He was supported by Mohammed Monguno, Chairman Agricultural Production and Services committee.
” I totally concur that this motion is speculative and will be tantamount to this House embarking on a voyage of discovery,” he said.
While Umar Bago (APC Niger) was in agreement with the two previous speakers, some lawmakers strongly opposed the suggestion of stepping the motion down.
Henry Archibong (PDP Akwa- Ibom) noted that section 80(2) of the constitution must come into play as the House must first ascertain if the money is coming from the Federation Account or not.
Hon. Samson Okwu ( Benue) said if the fund was from the Excess Crude Account, then it was an illegal fund hence there was no criteria for withdrawal and that the states did not put money into the account and cannot claim it belongs to them.
Uzoma Abonta ( Abia PDP) wanted to know which part of the fund belonged to the Federal Government .” We have to know the the total amount that has been tampered with. The Accountant General’s Office should tell us how much is left,” he said.
Nnena Elendu- Ukeje ( PDP Abia) and Chairperson House Committee on Foreign Affairs said information shows that the ECA is down to a couple of million dollars, ” so this $1 billion couldn’t have been for states. The ECA should be investigated,” she said.
Bahago Ahman-Pategi said its both a constitutional and accounting issue. The President, he said, has asked for $1 billion. He said the $1 billion would be plus 13 percent, and other charges.” What we need to do, is to get the Fiscal Allocation Committee to add the charges,” he said.
Deputy Speaker Yussuff Lasun noted that there was about the Consolidated Revenue Account and the Federation Account.
“Our constitution does not clearly separate consolidated and Federation Accounts. The $1 billion has been wrongly taken from the account that belong to all of us.”
He said while the motion was important because of the “touchy nature of the country”, adding that the $1 billion should be left alone because “the threat of Boko Haram is real.”
The accounting for the derivation should be worked out, he said, as suggested by Hon. Ahman-Pategi.
Speaker Yakubu Dogara at this point intervened saying that the Excess Crude Account belongs to the three tiers of government.
“If there are disputes amongst the governors, looking at section 80 of the constitution, we have to resolve on if they can take from it without the approval of the National Assembly. We just have to suspend action until we have established wrongdoing,” he said.
The members thereafter voted that the issue be investigated by the House committee on Finance and a report be tendered before the House within four weeks for further legislative action.
Chikere, while moving the motion, had said: “The 13% derivation fund payable to oil producing States had not been deducted and paid to them from the $1 Billion before or after the approval of the said sum to fight Boko Haram insurgency.
“If the 13% derivation fund is not deducted from the $1 Billion and paid to the oil producing States, it would amount to double contribution from the said States and also a breach of section 162(2) of the 1999 Constitution and Section 1 of the Allocation of Revenue (Federation Account, etc.) Act, Cap. A15, Laws of the Federation of Nigeria, 2004.”
