The House of Representatives on Wednesday resolved to invetsigate allegations bothering on non-remittance of over $5 billion into the federation account leved against Central Bank of Nigeria (CBN).
To this end, the House resolved to set up an Ad-hoc Committee to probe the alleged infraction by the apex bank and report back within eight weeks for further legislative action.
The resolution was passed sequel to the adoption of a motion sponsored by Ayo Omidiran (APC-Osun) who alleged that CBN flouted provisions of Sections 80 (1&2) and 81 of the 1999 Constitution.
In her lead debate, Omidiran, deputy Chairman, House Committee on Sport also alleged that revenue inflows into the federation account being prepared by the CBN instead of the office of the Accountant General of the Federation.
She alleged that the apex bank “takes advantage of this all important function of warehousing funds for the three tiers of government and preparation of the federation account statement, to manipulate the system by opening various accounts not known to the three tiers of government where funds are remitted, hidden, diverted and spent without authorization.”
According to her, CBN had in 2006 opened various accounts with JP Morgan Chase Bank in New York, in which oil companies remit revenues for the federation, even as it maintains another account with the Federal Reserve Bank of New York.
According to her, the CBN’s responsibility of receiving revenue in foreign currencies and converting same to naira for the benefit of the three tiers of government, has led to substantial loss in the amounts remitted to the federation account.
“The substantial difference between the official exchange rate of dollar to Naira, and that at which bureau de change sell in the parallel market, whereas it’s the CBN that sells dollars to the bureau de change operators on a weekly basis, as well as regulate the financial market.
“In the recent past, FAAC meetings have been postponed due to irregularities observed in the federation account by the states.
“The CBN has violated Section 80(2) of the 1999 Constitution by spending funds not appropriated by the National Assembly.
“The CBN takes 0.25 percent of all foreign denominated revenue as exchange commission for converting dollars to Naira, but even after deducting this commission, the balance credited to the Federation Account at various times have been in negative difference (against expectations), running into billions of naira per year.
“The office of the Accountant General of the Federation hasn’t reported these infractions of under-remittance of millions of dollars and trillions of naira into the Federation Account by the CBN,” Omidiran observed.
KEHINDE AKINTOLA, Abuja
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