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PDP Governors seek investigation of fuel consumption ascribed to Nigerians

PDP Governors seek investigation of fuel consumption ascribed to Nigerians

Governors of the People’s Democratic Party (PDP) have expressed concern over various reports and claims of incidents of stealing of crude oil ranging from 80percent to 95percent of production made by industry practitioners and called on the Federal Government to set up an appropriate mechanism to reverse this trend and bring perpetrators to account.

This is as they also decried the inability of the NNPC to make its statutory contributions to the Federation Account, in spite of oil selling at above $110.

The governors in a communique issued after its meeting in Aba, the commercial hub of Abia state, Wednesday, stated that it is unconstitutional for NNPC to determine at its whim and discretion when and what to pay to the Federation Account, as it is a mere trustee of the funds for the three tiers of Government: Federal, States and Local Governments.

Speaking through Governor Aminu Tambuwal, its chairman, the PDP Governors called for investigations and audit of the quantity of consumption of fuel ascribed to Nigerians and for deployment of technology at the filling stations to determine in a transparent manner the volume of consumption.

The Governors stated that they would resist any further attempt by NNPC to ascribe unsubstantiated subsidy claims to other tiers of government.

They stated that Section 162 (1) of the 1999 Constitution of the Federal Republic of Nigeria as amended stipulates that “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation…”

and Section 162 (10) states that “For the purpose of subsection (1) of this section, “revenue” means any income or return accruing to or derived by the Government of the Federation from any source and includes, any receipt, however described, arising from the operation of any law; any return, however described, arising from or in respect of any property held by the Government of the Federation and any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body”.

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They alleged that as of today, March 23, 2022 that18 federation revenue agencies are not paying/remitting any revenue to the FAAC Account.

These agencies according to the PDP Governors include the Central Bank of Nigeria, Nigeria Maritime Administration and Safety Agency (NIMASA), Nigeria Liquefied Natural Gas (NLNG), Nigeria Communication Commission (NCC), Economic and Financial Crimes Commission (EFCC), Nigerian Ports Authority (NPA) and Security Exchange Commission.

They noted that FIRS and DPR takes cost of collection of 4 percent of revenue collected, while Customs collects 7 percent In March 2022, for instance,

“FIRS took N15.4billion as cost of collection and Customs took N8.4b. If these are annualised, FIRS and Customs collects about N1.84billion and Customs N100b per annum. Obviously, some states of the Federation’s capital budget does not come close to these.

“Nigeria Federation has 49 percent shareholding in Nigerian Liquified Natural Gas (NLNG).

According to the Minister of Finance during the 2020 budget performance brief at the National Assembly stated that the federation received a dividend of N144billion from NLNG. This figure to the best of our knowledge was never paid into the Federation Account.

They alleged that NNPC deducts N8.33billion monthly for the rehabilitation of the refineries in Nigeria, while till date no refinery is working.

“On priority projects of the Nation’s oil industry, NNPC deducted N788.78billion for various investments between 2018-2021 without recourse to FAAC.

“NNPC in 2021 alone claimed to have paid over N1trillion as petroleum subsidy. Indeed, the month of March 2022, N220 billion was deducted as oil subsidy with a promise that N328 billion will be deducted in April 2022. This is unacceptable.

“NNPC and FIRS as well as other remitting agencies continue to apply an exchange rate of N389/$1 as against the import and export window of N416/$1. The extent of this leakage can be better felt, if this rate is compared to the current N570/$1.

“From available records about N7.6T is withheld between 2012 and 2021, by NNPC from the Federation Account. All these are said to be payments for oil subsidies.

The PDP Governors believed that all these leakages in NNPC have been made possible, because the President is also the Minister of Petroleum and called for urgent separation of these two portfolios.

The Forum noted the approval by the PDP NEC of the time table and timelines for congresses and convention of the Party and urged all party members and party leadership to remain focused and united to win power in 2023, to tackle the myriads of problems facing the country.

The PDP Governors congratulated the host, Governor Okezie Ikpeazu, the PDP Governors’ Forum Vice Chairman, for his generosity and hospitality in the hosting of the meeting.

In attendance were, Governor Aminu Waziri Tambuwal of Sokoto State, chairman of the forum, Governor Okezie Ikpeazu, Abia State, vice chairman, Governor Ahmadu Umaru Fintiri of -Adamawa State, Governor Udom Emmanuel of Akwa Ibom State, Governor Bala Mohammed of Bauchi State, Governor Douye Diri – Bayelsa State, Governor Samuel Ortom of Benue State, Governor Ifeanyi Okowa of Delta State, Governor Godwin Obaseki of Edo State, Governor Ifeanyi Ugwuanyi of Enugu State, Governor Oluseyi Abiodun Makinde of Oyo State, Governor Nyesom Wike of Rivers State and Haruna Manu, deputy governor of Taraba State.