The House of Representatives has initiated an investigation into the Nigerian National Petroleum Company Limited (NNPCL) over accusations of failure to remit taxes to the Federation Account, as raised by the Federation Account Allocation Committee.
Following a motion put forward by Hon. Uduak A. Odudoh, the House has assigned its Committee on Finance to conduct a thorough inquiry into the allegations, given that the Revenue Allocation Committee claims that such non-compliance has resulted in a revenue loss of over N2 trillion.
Odudoh pointed out that Section 162(1) of the Nigerian Constitution stipulates the establishment of “The Federation Account,” where all government revenues, with only specific exemptions, are to be deposited. He emphasized that the Federation Account belongs to the entire nation, with the Federal Government serving as the custodian on behalf of the three tiers of government and the Nigerian populace at large.
Odudoh cited the Allocation of Revenue Act, which outlines the guidelines for distributing revenue among the federal, state, and local government entities in Nigeria.
Highlighting the importance of transparency and accountability in revenue collection, remittance, and distribution for national development, Odudoh expressed his conviction that the Federation Account Allocation Committee (FAAC), established under Section 6 of the Allocation of Revenue Act, should report annually to the National Assembly regarding its functions.
The repeated failure of the Nigerian National Petroleum Company Limited (NNPCL) to remit crude sales, royalties, and taxes into the Federation Account has been an ongoing issue. Odudoh noted that the Federation Account Allocation Committee (FAAC) has repeatedly accused the NNPC of withholding over N2 trillion in revenue from crude sales, royalties, and taxes.
Conversely, the Nigerian National Petroleum Company Limited has claimed that the Federal Government owes it over N4 trillion in subsidy payments, power debts, and other miscellaneous charges. As a result, the NNPC has stated its reluctance to remit funds until these debts are recovered
