The House Representatives has resolved to investigate the Central Bank of Nigeria (CBN) for alleged mismanagement of funds and non-disclosure of details of interest on investments from the Excess Crude Oil/Petroleum Profits Tax/Royalty Account from 2015 till date. 

The resolution of the House to probe the apex bank followed the adoption of a motion moved by Hon. Esosa Iyawe at plenary on Thursday.

Moving the motion, Iyawe said CBN is the banker to the Federal Government and custodian of investment vehicles, including the Petroleum Profits Tax (PPT) and the Excess Crude Account (ECA), among others.

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The lawmaker expressed concern that the 2015 annual report of the Auditor-General of the Federation showed that an interest of $1,829,025.45 was deposited in the ECA as interest on Investments, but there were no details as regards the principal sums deposited, the tenor and the interest rate. 

Iyawe noted that the CBN has flagrantly and consistently refused the requests by the Auditor General for the Federation to disclose the details regarding the management of interests accruing from the Petroleum Profit tax (PPT)/Royalty and Foreign Excess Crude Account.

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He also expressed worry about reports, which revealed unapproved and indiscriminate withdrawals from the ECA, including current year expenditures, fuel subsidies, debt financing and power projects, all of which are outside the fund’s mandate.

Iyawe further lamented that the 2016 audit report revealed the disappearance of over $9.5 million interest accrued from the PPT investment.

He also expressed concern that obscurity has consistently characterized the management of interests accruing on Federal Government’s investments, which was in contravention of the accountability principle and points to misuse of the much-needed government funds. 

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The lawmaker emphasised that the ECA has been riddled with controversy, allegations of corruption and uncertain performance, and its absence of rules governing deposits, withdrawals and investments led to the Natural Resource Governance Institute ranking Nigeria as the second-most poorly governed fund among 34 resource-rich nation

Iyawe pointed out that over the years, the ECA has consistently borne allegations of mismanagement along with a barrage of lawsuits challenging its legality as there was no law backing it.

He emphasised that experts have raised concerns several times over ECA’s balances, which seem to change at will without any corresponding evidence of withdrawals or approvals of such withdrawals. 

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The lawmaker noted that the lack of transparency from the CBN has significantly affected the revenue accruals to the Federation Account, as well as undermines the Federal Government’s efforts to plug leakages, reduce corruption and improve revenue for the federation.

 Against this background, he urged “the Central Bank of Nigeria (CBN) to disclose without further delay, and following the required format, all the interests and principal sums on the investments in the Excess Crude Oil/Petroleum Profits tax/Royalty Account to the Auditor-General for the Federation’s Office”.

It also set up an Ad hoc Committee to determine the legality of the ECA and investigate the status and management of all the principal sums deposited, tenor, and interest rate of  the Petroleum Profits Tax/Royalty and Excess Crude Account from 2015 to date.

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