Reps query handling of $23m, N2.725 billion by AGF, NNPC

*SEC to downsize workforce

Tom Okpe, Abuja

The House of Representatives committee on finance has said that the Nigeria National Petroleum Corporation (NNPC) should submit evidences of revenue remittances into Consolidated Federation Account from 2014 to 2019.

The lawmakers particularly asked the NNPC to furnish it with details of the revenue it calls ‘Advance Consideration’ which amounts to N2.725 billion in the 2018 and 2019 accounts of the corporation.

According to the documents submitted to the committee which is investigating revenue remittances, NNPC received advanced consideration of N820.511 million from customers in 2018 and N1.904 billion in 2019.

The Committee also demanded for the Corporation’s group account details and the appearance of all the Heads of NNPC subsidiaries and the Group Managing Director (GMD), Mele Kyari at a date to be fixed.

Deputy Chairman of the Committee, Saidu Abdullahi expressed worry over the manner NNPC subsidiaries were operating in the country in terms of revenue remittances.

“As a country, it is time we sit down as citizens and talk to ourselves, we have a responsibility of making this country work and to make it work is by doing what is right.

“We have seen loopholes, we have seen leakages; we cannot over emphasize that the economy this country has the capacity to fund a N15 trillion budget; what we need to do is to ensure all agencies do what is right,” he said.

Earlier, the Group General Manager, Federation Account of NNPC, Bello Abdullahi said the Corporation has subsidiaries registered under Company And Allied Matters Act (CAMA) and pay taxes and other statutory obligations to the relevant authorities, but do not remit revenue to the Federation Account.

Also, the Securities and Exchange Commission (SEC) is considering todownsize its workforce to cut cost in the face of dwindling revenue.

Director General of SEC, Lamido Yuguda made this disclosure when he appeared before the House Committee on Finance, investigating Ministries, Departments and Agencies (MDAs) Revenue remittances into the Federation Account.

Yuguda, represented by SEC’s Executive Commissioner for Corporate Services, Ibrahim Boyi said the Commission was determined to boost its revenue and reduce the cost of operation.

“Unfortunately, almost 80% of our cost is staff cost. So, we need to find a way of chopping off that cost and I think work is already going on. We are top heavy, almost 50% of our staff are from senior managers.

“So that’s the mandate, I think we have taken as management and the board and I’m sure in the matter of a few months, we’ll be able to come with a solution but the idea really is to make the Commission more sustainable and make sure that our revenue is going forward.”

On remittances to the Federation Account, Boyi said: “We have reconciled fully up to 2018 and, you know, in 2020 there was a new directive by the Federal Government that whether you are self funding agency or not, 25% of Revenue that hits your TSA will be deducted, which has been going on.

“We are also going to factor that into our subsequent reconciliation with the office of the Accountant General. Unfortunately, for SEC in 2019, 2020 and this year, we’re likely to end up with some deficits because of revenue shortage,” he said.

Deputy Chairman of the Committee, Saidu Abdullahi who represented the Chairman, James Faleke directed the Commission to reconcile its 2019 and 2020 Account with Office of the Accountant-General and explore ways of generating more revenue.

Also, the House on Tuesday furiously disagreed with the Accountant General of the Federation (AGF), Ahmed Idris, over borrowings from assets recovery account by government agencies.

References were made specifically to $23 million from the account which is yet to be refunded.

Appearing before Ad-hoc Committee on Assessment and Status of All Recovered Loots Movable and Immovable Assets from 2002 to 2020 by Agencies of the Federal Government of Nigeria for Effective Efficient Management and Utilisation, headed by Adejoro Adeogun, Idris was made to answer some questions.

Adeogun pointed out that such instances abound, wondering if money can be taken from the coffers of the government without appropriation.

He said unless the Accountant General could provide evidence of the refund, it would be considered that such withdrawals were made illegally.

The committee would however, meet with the Accountant General on Thursday in a closed-door meeting to give a breakdown of such borrowings by government agencies and also to prove such monies have been refunded.

“What we are trying to draw attention to is that money is being borrowed out from the recovery account and not being refunded.

Unless you are able to prove to us that it was refunded, we consider that to mean that payments have been made illegally,” Adeogun said.

The committee chairman pointed that most of the projects for which these government agencies borrow such monies have already been appropriated for, in the budget.

The Attorney General of the Federation, Abubakar Malami who earlier appeared before the committee said the National Assembly was slowing down effective management of recovered assets by the non passage of the Proceeds of Crimes Bill.

The Bill, he said, has put in place effective mechanisms, both in terms of database, disposal, processes and procedure to manage recovered assets.

Giving a breakdown of recoveries made since 2017, he said, “We had succeeded in December 2017 to recover $322 million from Switzerland. Again in May 2020, we succeeded in recovering $311, 797, 866.11 from the Island of Jersey and indeed the UK.

In October 2020, we recovered 5, 494, 743.71 Euros from the Republic of Northern Ireland in Nigeria. And of recent we have succeeded in May 2021 in recovering £4, 214, 017 from the UK known as Ibori loot.”

He said all these are lodged with the Central Bank of Nigeria (CBN) Account on Assets Recovery, and receipts of amounts confirmed by the CBN