Reps To Probe CBN’s Alleged $11m Excess Crude Oil Investment.

https://legalattorneyblog.com/2023/07/17/reps-to-probe-cbns-alleged-11m-excess-crude-oil-investment-interests-magt/The House of 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 amounting to $11 million from 2015 to date.

It, therefore, urged CBN to disclose, and following the required format, all the interests and principal sums on the investments to the Auditor-General for the Federation’s Office.

These resolutions were sequel to adopting a motion sponsored by Hon. Esosa Iyawe from Edo State at plenary on Thursday.

In his debate, Iyawe said the 2015 Annual Report of the Auditor-General for the Federation showed that interest of USD1,829,025.45 was deposited in the Excess Crude Account as interest on Investments. Still, there were no details as regards the principal sums deposited, the tenor and the interest rate.

Reps To Probe CBN’s Alleged $11m Excess Crude Oil Investment.

The lawmaker expressed worry that Disturb that the 2016 audit report revealed the disappearance of over $9.5 million in interest accrued from the Petroleum Profit Tax (PPT) Investment.

He expressed concern 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.

“Reports revealed unapproved and indiscriminate withdrawals from the ECA, including current year expenditures, fuel subsidies, debt financing and power projects, all outside the fund’s mandate.

“Obscurity has consistently characterised the management of interests accruing on federal government investments, which is in contravention of the accountability principle and points to misuse of much-needed government funds.”

Iyawe further lamented the lack of transparency from the CBN, which significantly affected the revenue accruable to the Federation Account and undermined the federal government’s efforts to plug leakages, reduce corruption, and improve revenue for the Federation.

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Reps To Probe CBN’s Alleged $11m Excess Crude Oil Investment.