Senate Observes Under Remittance Of N3.8 Trillion By NNPC

Joseph Bakare

The Senate on Wednesday, July 14, at plenary observed that there was under-remitted sum of N3.8 trillion from domestic crude oil sales

by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account between January and December 2015.

The Senate therefore, urged the NNPC to desist from further deduction at source; as the practice contravened Section 162(1) of the 1999 Constitution (as amended).

It also mandated the Federation Accounts Allocation Committee (FAAC) or any other approving authority; to urgently approve the agreed percentage which should be allocated to NNPC monthly as the operational cost to prevent its operations from been affected adversely.

The decision was sequel to the adoption of 59 recommendations contained in the report of its Committee on Public Accounts on the Annual report of the Auditor-General for the Federation on the Accounts of the Federation for the year ended Dec. 31, 2015.

The Senate also noted that the outstanding revenue collection from Solid Minerals not remitted to the Federation Account; but kept in an account maintained by the Central Bank of Nigeria, (CBN) in contravention of provisions of Section 162(1) of the 1999 Constitution as amended.

On unretired advances involving 39 Ministries, Departments, and Agencies (MDAs) to the tune of N2.2 billion; the upper chamber demanded the sanctioning of Accounting Officers of the affected MDAs; in accordance with the provision of Rule 3124 of Financial Regulations.

It gave the Accountant-General of the Federation, Ahmed Idris, a deadline of 90 days; to identify and sanction officers responsible for the mismanagement of public funds; to the tune of N54.1 billion as exchange loss on external loans.

“The Accountant General is expected to report back to the Senate Committee on Public Accounts within 90 days,” it asked.

It further directed the Accountant-General of the Federation to recover the sum of N378,879,674.99 tax revenue; from Webb Fontaine Ltd and remit same to the Federal Inland Revenue Service within six months.

The upper chamber also directed the Nigerian Posts Authority (NPA) to refund the sum of 37.6 million dollars to the federal government coffers; due to lack of diligence in the review of NPA’s charges on a contract of Towage services.

It mandated the Economic and Financial Crimes Commission (EFCC) to subject the Accounting Officers to the investigation; in accordance with Rule 3112 (I and II) of the Financial Regulations.

Add Comment