Ministries, parastatals failed to remit N1.7 trillion in 5 years - Reps

Bola Badmus, Abuja - 23.07.2008

THE House of Representatives on Tuesday revealed that it had discovered about N1.5 trillion not paid into the Federation Accounts by ministries, departments and agencies (MDAs) of government between 2003 and 2008.

Chairman, House Committee on Finance, Honourable John Enoh, disclosed this at an investigative hearing on the non-remittance of monies into the Federation Accounts by MDAs.

This revelation came as the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Alhaji Abubakar Yar’Adua, said his corporation expended $20.11 billion out of the $77.031 billion it generated during the period under review.

Enoh said his committee had been able to establish that N1.5 trillion was not remitted out of N3.6 trillion that Nigeria made during the period.

The chairman said more was yet to be revealed as the amount discovered was just from the submissions of 60 per cent of the total MDAs that were given the responsibility of collecting revenue for the Federal government.

According to him, the amount involved was expected to be higher than what was already known by the time the committee would end its investigation.

Enoh disclosed that the decision to investigate the unremitted revenues by the MDAs was borne out of the commitment of the House to ensure that Nigeria earned more money from Internally Generated Revenue (IGR) than even what was being earned from the sale of crude oil.

Group Managing Director of NNPC, Alhaji Yar’Adua, said his corporation was able to remit $77.031 billion into the Federation Accounts within the period under review and added that the NNPC had authority in line with the Act setting it up to expend the $20.11 billion.

He said this was allowed under what was known in the corporation’s accounting system as “Cash Calls.”

Speaking on the high cost of diesel, the GMD revealed that since the deregulation of the downstream of the oil sector by the Federal Government in 2003, the NNPC had been selling diesel at N61, whereas the same product sold for about N200 in the open market.

He explained that the crisis was due to the decision of the Obasanjo administration to regulate and deregulate the downstream of the oil sector at the same time, declaring that the situation had put pressure on the NNPC as it continued to subsidise at the risk of its collapse.

“NNPC may collapse in the near future if we continue to sell diesel at N61. At the same time, companies in Nigeria are closing down due to the high cost of this product because due to lack of regular power supply in the country, 80 per cent of companies run on diesel and this is not good for our economy.

“I would like to appeal to members of this committee to put heads together with the executive arm of government so that we can find lasting solution to this,” he said.

Yar’Adua told the committee on finance that Warri Refinery currently produced at 90 per cent installed capacity while Kaduna Refinery, according to him, produced at between 70 and 80 per cent.

He stated the Port Harcourt Refinery might commence production next week, saying everything had been put in order following the fire which engulfed it and damaged its central cooling system.