Reps to investigate NNPC’s remittances to Federation Account

The House of Representatives yesterday adopted a motion mandating its joint Committee on Finance,  Petroleum Resources  (Upstream and Downstream) and Gas Resources, to investigate how the Nigerian National Corporation (NNPC)  has been remitting revenue into the Federation Account.

Basing its decision on the need for accurate revenue projection in the national budget and for the parliament to ascertain NNPC’s level of compliance with Section 162 [1] of the 1999 Constitution, the House further authorised investigations into the level of compliance of other parastatals and agencies in the Ministry of petroleum Resources, particularly, the Petroleum Products Pricing Regulatory Agency (PPPRA).

This was sequel to the unanimous adoption of  a motion brought before the House by the Minority Whip  Hon. Samson Osagie (ACN-Edo).

Recently, the NNPC’s inability to remit N450 billion into the Federation Account has resulted in the delay the 36 states from collecting their August allocation from the Federation Accounts..

The agency has however agreed to pay the N450 billion to the Federation Account in 32 instalments.

Hon. Osagie, in his debate on the motion, said NNPC’s refusal to remit revenue accruing to it to the federation account violated the provisions of Section162 of the 1999 constitution.

His words: “This seeming violation of the constitution by the NNPC is against the principles of constitutional democracy. The NNPC, as a major revenue earner for the federation, has not been administered in the most transparent manner.

“The Constitution says that all revenues of government must be remitted to the federation account, but the NNPC has failed to do this. NNPC has become a behemoth that has refused to subject its budget to the National Assembly for legislative scrutiny. Where is the N450 billion? he asked.

Osagie said Nigeria as a mono product economy dependent on oil revenues deserved to have a transparent and accountable revenue system.

He emphasized that there was a need for the House to strengthen its oversight functions so as to plug loopholes and leakages in its revenue system.

The lawmaker said there is need to beam our searchlight on all MDAs to ensure that all revenues is paid into the federation account adding that no meaningful development would be achieved without adequate remittance of revenue to the federation account.

Hon. Andrew Uchendu (PDP-Rivers) who attributed the problem to the failure of the House to oversight activities of the corporation said concerted efforts must be put in place to check the corporation’s activities.

The Minority Leader of the House, Hon. Femi Gbajabiamila  (CAN Lagos) in his contribution said in a situation whereby it has been difficult financing budgetary projection, it was for the House to “follow the money to wherever its destination  is, because it is 20 percent of the national budget.”

Nation