The House of Representatives has unanimously passed a motion urging the Central Bank of Nigeria (CBN) to promptly disclose all details of the interests and principal sums associated with the investments in the Excess Crude Account (ECA), Petroleum Profits Tax (PPT), and Royalty Account to the Office of the Auditor-General for the Federation.
Representative Esosa Iyawe from Edo State presented the motion during the plenary session on Thursday. In his presentation, he emphasized that the CBN serves as the Federal Government’s banker and is responsible for safeguarding various investment vehicles, including the PPT and the ECA.
Referring to the 2015 Annual Report of the Auditor-General for the Federation, Iyawe highlighted that interest amounting to $1.82 million was deposited in the ECA as a result of these investments. However, the report lacked specific details regarding the principal sums deposited, the duration of the investments, and the corresponding interest rates.
“The CBN has flagrantly and consistently refused the requests by the Auditor-General for the Federation to disclose the details regarding the management of interests accruing from the PPT/ Royalty and Foreign Excess Crude Account;
“Reports which revealed unapproved and indiscriminate withdrawals from the ECA, including current year expenditures, fuel subsidies, debt financing, and power projects, all of which are outside the fund’s mandate.
“Disturbed that the 2016 audit report revealed the disappearance of over $9.5 million interest accrued from the PPT investment,” he said.
Representative Iyawe expressed concern over the lack of transparency and accountability in managing interests on Federal Government investments, suggesting possible mismanagement of crucial government funds. He pointed out that the Excess Crude Account (ECA) has been marred by controversies, corruption allegations, and uncertain performance.
The absence of clear guidelines for deposits, withdrawals, and investments in the ECA led to Nigeria’s poor ranking among resource-rich nations in terms of fund governance by the Natural Resource Governance Institute.
Moreover, the ECA has faced accusations of mismanagement and legal challenges due to its lack of legal backing. Experts have also raised questions about the fluctuating balances in the ECA without corresponding evidence of withdrawals or approvals.
The lack of transparency from the CBN has adversely affected the revenue accruing to the Federation Account, undermining the government’s efforts to address leakages, corruption, and revenue improvement.
In response to these concerns, the House of Representatives has resolved to establish an Ad-hoc Committee. This committee will investigate the legality of the ECA and examine the status and management of all principal sums deposited, their tenor, and interest rates for the PPT/Royalty and ECA from 2015 to the present.
Deputy Speaker Benjamin Kalu has emphasized the committee’s responsibility to ensure compliance with the investigation’s objectives.
