{"id":5757,"date":"2017-11-07T20:03:55","date_gmt":"2017-11-07T20:03:55","guid":{"rendered":"https:\/\/everyday.ng\/?p=5757"},"modified":"2017-11-07T20:03:55","modified_gmt":"2017-11-07T20:03:55","slug":"senate-declines-to-probe-use-of-122m-as-it-seeks-to-abolish-excess-crude-account","status":"publish","type":"post","link":"https:\/\/everyday.ng\/?p=5757","title":{"rendered":"Senate declines to probe use of $122m as it seeks to abolish Excess Crude Account"},"content":{"rendered":"

By Yemi Oyeyemi<\/strong>, Abuja\u00a0
\nThe Senate has resisted an attempt by some of its members to influence the setting up of an ad-hoc committee to probe the use of $122.2m accrued to the Excess Crude Account, ECA, between May 2015 and August 2017, but which was not paid into the account.\u00a0
\nBot it resolved to abolish the ECA, an account set up under former President Olusegun Obasanjo to save oil revenues above the budget benchmark year in year out.
\nIt declared that the account \u201cis alien to the 1999 constitution as amended or any known law in the country\u201d.
\nThe Senate resolution Tuesday followed the adoption of a motion, \u201cThe Excess Crude Account: an Illegality and a Drain Pipe\u201d, by Senator\u00a0Rose\u00a0O. Oko (PDP Cross River North)\u00a0and 43 others cutting across party and ethnic lines.
\nOne of the prayers on the motion\u00a0was that the Senate should \u201cmandate\u00a0an ad-hoc committee to investigate the revenue that accrued from the amount above the oil benchmark from 2004 to date and its utilization, identifying any infractions committed and report back\u00a0within two months\u201d.\u00a0
\nSurprisingly, majority of the Senators, including former governors who were part of the managers of the account in their various states negatived with a loud “Nay”.
\nSenate President, Dr. Bukola Saraki, a former governor quickly ruled in favour of opposition to the probe.\u00a0
\nThe upper legislative chamber, however, urged the government to pay the amount above the oil benchmark into the Federation Account and appropriate some into the Nigerian Sovereign Investment Authority, NSIA and other sectors in compliance with the constitution.
\nSenator Oko, while leading debate on the motion,\u00a0said the senate had\u00a0observed that between May, 2015 and August, 2017, about US $122.2m had accrued and ought to have been paid to the ECA.
\nShe enjoined the Upper House to place the US $122.2m in the Sovereign Wealth Fund, SWF upon the amendment of section 162 of the Constitution and other sectors as deemed appropriate
\nShe particularly\u00a0advised the government to act in conformity with sections 80 (1-4) and 162 (1-3) of the 1999 Constitution as amended in its revenue receipt and expenditure, saying that the present administration had in May 2017, announced a resumption of arbitrary payment into the ECA of $87m ostensibly since May, 2015.\u00a0
\nAccording to her, the senate was \u201cdeeply saddened by the continued impunity of the ECA and its discretionary operation in contravention of the 1999 Constitution, creating room for imprudence, recklessness and arbitrariness\u201d.\u00a0
\nShe added that the upper legislative chamber was \u201cvery concerned that this is one veritable source of huge revenue leakage in the country\u201d.\u00a0
\nThe lawmaker informed that\u00a0ECA was set up in 2004, ostensibly to provide savings for the country and stabilization for the economy during periods of shortfalls in oil revenue, adding that the accruals to the account were expected to be the amount above the benchmark of crude oil sales.
\nSenator Oko said the Upper House was \u201cfurther alarmed that a report by the National Resource Governance Institute rates Nigeria\u2019s Excess Crude Account as one of the most poorly managed around the world, where its operation is discretionary and at the whims of the Executive\u201d.
\nShe noted\u00a0for instance that the ECA increased from $5.16b in 2005 to over $20b in 2008, and decreased to less than $4b by 2010 with no known tracking of its operations.
\nThe lawmaker alleged that \u201cat various times and from several quarters in 2013, it was purported that $5b was missing from the ECA, and that $2b was withdrawn without authorization\u201d.
\nAccording to her, Nigeria cannot continue to operate an appreciable quantum of revenue arbitrarily, outside the law with no checks and balances while expecting amendment of section 162 of the constitution to cure the problem of savings for the nation.
\nIn his contributions, Senator Adamu Aliero (APC Kebbi Central) supported the abolition of the ECA which he recalled was introduced during former President Olusegun Obasanjo administration to\u00a0protect planned budgets against shortfalls due to volatile\u00a0crude\u00a0oil prices.
\nHe said if the account, out of which the independent power project, IPP among others were sponsored, is stopped, it would ensure transparency and accountability in revenue generation and payment into the Federation Account.
\nSenator Mao Ohuabunwa (PDP Abia North) also argued that the ECA should be abolished despite the fact that the country needs to save for the rainy day due to the alleged impunity and arbitrariness in the account\u2019s operation.
\nHe called for the setting up an ad-hoc committee to investigate the revenue that accrued from the country\u2019s oil benchmark from 2004.
\nSpeaking in the same vein, Senator Atai Ali Aidoko (PDP Kogi East) described the present operations of ECA as the \u201cbiggest flush fund\u201d in the country, saying one-third of the spending were done with illegality.
\nBut Senator Suleiman Hunkuyi (APC Kaduna North) advised that National Assembly should look into how to regulate the ECA for surplus funding rather than its complete abrogation.
\nAccording to him, the exigency of the time called for the introduction of the account, but agreed that the way it was poorly managed should be urgently addressed.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Yemi Oyeyemi, Abuja\u00a0 The Senate has resisted an attempt by some of its members to influence the setting up of an ad-hoc committee to probe the use of $122.2m accrued to the Excess Crude Account, ECA, between May 2015 and August 2017, but which was not paid into the account.\u00a0 Bot it resolved to […]<\/p>\n","protected":false},"author":7,"featured_media":5758,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-5757","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/5757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5757"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/5757\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}