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Economic Confidential,
April
2008
Power Scam: Facts on Withdrawal from Excess Crude Account
2005-2007
By
Labaran Saleh
In
a Memorandum dated
15th
June 2006
submitted the same day by the Revenue Mobilisation Allocation and
Fiscal Commission on
Alleged Withdrawals of Funds from the Federation Account, the
Chairman of the Commission, Engr. Hamman Tukur informed the Joint
Senate Committees of Appropriation and Finance investigating the
Withdrawals of Funds from the Federation Account that the Excess
Revenue Account, from which all the withdrawals have been effected,
is made up of: Federation Export Crude, Oil, Excess PPT, Excess
Royalty which are in dollars while there also exists, another
account for excess revenue known as the Excess Domestic Crude
Account for amounts over and above the budgeted benchmark for crude
oil allocated to the Nigerian National Petroleum Corporation for
domestic consumption.
In
a document exclusively obtained by the Economic Confidential
magazine, it has been discovered that since 2003, the Federal
Government has been maintaining these accounts. The reasons may be
that the Federation is saving for a rainy day or that the Federal
Government wishes to ensure macroeconomic stability by controlling
money supply, mopping up excess liquidity as well as building
protective mechanisms against inflation and fluctuations in oil
prices.
On
the withdrawal from the Excess Revenue Account, the Commission
submitted that
Section 162(3) of the 1999 Constitution of the Federal Republic of
Nigeria provides that only the Federal, States and Local Government
Councils shall directly benefit from the Federation Account which
was reinforced by the Supreme Court judgment in the case of
Attorney-General of the Federation Vs Attorney-General of Abia & 35
others (N0. 2) (2002) 6, NWLR, Part 764. In spite of this
Constitutional provision, there were arbitrary withdrawals to fund
some projects withdrawals from the Federation Account, particularly
the Excess Revenue Account.
While the Commission said it was deeply concerned by the epileptic
nature of energy supply, which invariably, is the fulcrum of our
desired economic development, however, it observed that: “deductions
have continued unabated from the Federation Account in the name of
developing power in the Niger-Delta which should have been from the
Federal Government of Nigeria’s budget. If these withdrawals are
advance payments, it is hoped that each is supported by a due
process bank bond guarantee. There is no time limit for the
deductions considering the speed at which some of the deductions
were made. The terms and conditions of the “loans” have also
remained unclear.
“The amounts are said to be loans as consented to by the
stakeholders, but the Federation Account Allocation Committee, has
not received any formal document indicating that the stakeholders
have agreed to give out loans from the Excess Revenue Accounts.
Obviously, a Governor of a State has no legal right to commit the
funds of his State without the express approval or appropriation by
his Assembly. Is ALGON an authority to agree/approve committing
Local Governments’ funds as loan of any description?
“Why is it that there is change of name from Niger-Delta Power
Holding Company to National Integrated Power Project? It may be
necessary to find out who is actually being paid these huge
deductions from the Federation Account.”
As
at that period and records
from FAAC files show that the sum of $1,045,259,903.23 was drawn
from either the Excess Crude Fund or from the Excess PPT Revenue
Fund for financing the power projects under three different titles,
as follows:
Niger Delta Power Holding Comp. Plants (NDPHCP)
From Excess Crude Account
Date Description
Amount
04/10/05 Funding of NDPHCP 1st
payment $ 98,359,656.76
01/12/05 Funding of NDPHCP 2nd
payment $ 77,802,405.75
21/12/05 Funding of NDPHCP
$ 664,271.18
29/12/05 Funding of NDPHCP
$ 609,145.25
Subtotal $177, 435, 478.94
(b) NNPC Joint Venture Operation Gas for NNDC Plants
Date Description
Amount
28/12/05 NNPC JVO –
Gas $213,230,000.00
(c) National Integrated Power Project (NIPP)
(i) From Excess Crude Oil Account:
Date Description
Amount
01/02/06 Funding of NIPP
$ 1,934,586.98
06/03/06 Funding of NIPP
$209,502,464.45
29/03/06 Funding of NIPP
$ 87,559,556.44
05/04/06 Funding of NIPP
$ 138,023.88
20/04/06 Funding of NIPP
$ 2,778,144.55
Subtotal
$301, 912, 776. 30
(ii) From Excess PPT Account:
Date Description
Amount
23/04/06 Funding of NIPP
$ 46,634,800.37
05/05/06 Funding of NIPP
$ 453,800.37
05/05/06 Funding of NIPP
$ 2,200,854.99
05/05/06 Funding of NIPP
$ 209,225.12
05/05/06 Funding of NIPP
$300,736,493.00
17/05/06 Funding of NIPP
$ 2,095,024.64
17/05/06 Funding of NIPP
$ 351,449.50
Subtotal
$352, 681, 647. 99
Grand Total
$1, 045, 259, 903.23
How
Deduction Continued Unabated to the End of OBJ Tenure
While the administration of President Olusegun Obasanjo refused to
heed the warning, Economic Confidential can
authoritatively reveal that the government continued to make further
illegal deductions from the Excess Crude
Account till June 2007, a month after handing over to President
Umaru Musa Yar’Adua to the tune of $3.9bn.
In the updated table of the deduction submitted to public hearing of
the House of Representatives’ Committee on Power and Steel, the
figures from deductions from excess crude account has risen
from $1bn in 2006 to over $3.97billon as
detailed below:
Deductions for the National Integrated Power Projects (NIPP) from
the Excess Crude, PPT/Royalty Accounts
|
S/N |
DATE |
DESCRIPTION |
AMOUNT ($) |
|
1 |
12/28/2005 |
NNPC JVO-Gas for NDDC Plants |
213,230,000.00 |
|
2 |
12/31/2006 |
Funding of NIPP |
96,626,397.78 |
|
3 |
12/31/2006 |
Funding of NIPP |
77,760,524.25 |
|
4 |
12/31/2006 |
Funding of NIPP |
654,377.69 |
|
5 |
1/2/2006 |
Funding of NIPP |
2,392,901.21 |
|
6 |
6/3/2006 |
Funding of NIPP |
209,502,464.45 |
|
7 |
29/03/2006 |
Funding of NIPP |
87,581,025.97 |
|
8 |
5/4/2006 |
Funding of NIPP |
138,078.56 |
|
9 |
12/31/2006 |
Funding of NIPP |
61,289,305.15 |
|
10 |
25/04/2006 |
Funding of NIPP |
2,779,685.75 |
|
11 |
5/5/2006 |
Funding of NIPP |
453,800.00 |
|
12 |
5/5/2006 |
Funding of NIPP |
2,200,854.99 |
|
13 |
5/5/2006 |
Funding of NIPP |
346,047.45 |
|
14 |
5/5/2006 |
Funding of NIPP |
3,007,364.93 |
|
15 |
17/05/2006 |
Funding of NIPP |
2,095,024.64 |
|
16 |
17/05/2006 |
Funding of NIPP |
351,449.50 |
|
17 |
19/05/2006 |
Funding of NIPP |
4,080,037.05 |
|
18 |
30/05/2006 |
Funding of NIPP |
57,680.11 |
|
19 |
12/6/2006 |
Funding of NIPP |
6,193,719.97 |
|
20 |
15/06/2006 |
Funding of NIPP |
4,414,072.54 |
|
21 |
6/22/2006 |
Funding of NIPP |
28,824,336.21 |
|
22 |
22/06/2006 |
Funding of NIPP |
14,040,860.21 |
|
23 |
22/06/2006 |
Funding of NIPP |
8,112,750.01 |
|
24 |
27/06/2006 |
Funding of NIPP |
20,394,447.33 |
|
25 |
4/7/2006 |
Funding of NIPP |
9,053,976.32 |
|
26 |
4/7/2006 |
Funding of NIPP |
9,433,189.27 |
|
27 |
4/8/2006 |
Funding of NIPP |
12,926,905.65 |
|
28 |
4/7/2006 |
Funding of NIPP |
289,913,161.02 |
|
29 |
4/7/2006 |
Funding of NIPP |
2,899,131.61 |
|
30 |
4/7/2006 |
Funding of NIPP |
125,004,315.87 |
|
31 |
4/7/2006 |
Funding of NIPP |
24,631,712.76 |
|
32 |
4/7/2006 |
Funding of NIPP |
1,250,043.16 |
|
33 |
14/07/2006 |
Funding of NIPP |
89,850,000.00 |
|
34 |
14/07/2006 |
Funding of NIPP |
898,500.00 |
|
35 |
14/07/2006 |
Funding of NIPP |
356,757.25 |
|
36 |
26/07/2006 |
Funding of NIPP |
3,082,971.64 |
|
37 |
26/07/2006 |
Funding of NIPP |
9,514,591.25 |
|
38 |
26/07/2006 |
Funding of NIPP |
49,755,446.29 |
|
39 |
9/8/2006 |
Funding of NIPP |
721,142.27 |
|
40 |
9/8/2006 |
Funding of NIPP |
538,293.07 |
|
41 |
9/8/2006 |
Funding of NIPP |
3,835,594.12 |
|
42 |
11/8/2006 |
Funding of NIPP |
77,310.22 |
|
43 |
14/08/2006 |
Funding of NIPP |
29,672,040.47 |
|
44 |
14/08/2006 |
Funding of NIPP |
27,686,597.47 |
|
45 |
16/08/2006 |
Funding of NIPP |
311,546.48 |
|
46 |
16/08/2006 |
Funding of NIPP |
187,954.28 |
|
47 |
17/08/2006 |
Funding of NIPP |
71,217.47 |
|
48 |
18/08/2006 |
Difference in Euro etc. Conversion |
24,576,753.54 |
|
49 |
12/9/2006 |
Funding of NIPP |
3,712,458.21 |
|
50 |
12/9/2006 |
Funding of NIPP |
4,307,266.97 |
|
51 |
12/9/2006 |
Funding of NIPP |
847,623.20 |
|
52 |
14/09/2006 |
Funding of NIPP |
19,945,095.52 |
|
53 |
26/09/2006 |
Funding of NIPP |
128,522.81 |
|
54 |
26/09/2006 |
Funding of NIPP |
2,453,337.63 |
|
55 |
26/09/2006 |
Funding of NIPP |
6,974,264.29 |
|
56 |
4/10/2006 |
Funding of NIPP |
603,051.00 |
|
57 |
5/10/2006 |
Funding of NIPP (Pipelines) |
1,300,000,000.00 |
|
58 |
22/01/2007 |
Funding of NIPP |
1,184,806.74 |
|
59 |
22/01/2007 |
Funding of NIPP |
10,377,197.21 |
|
60 |
22/01/2007 |
Funding of NIPP |
2,545,733.95 |
|
61 |
22/01/2007 |
Funding of NIPP |
14,320,839.77 |
|
62 |
22/01/2007 |
Funding of NIPP |
19,018,301.90 |
|
63 |
22/01/2007 |
Funding of NIPP |
8,564,540.70 |
|
64 |
22/01/2007 |
Funding of NIPP |
10,411,201.94 |
|
65 |
24/01/2007 |
Funding of NIPP |
169,602.00 |
|
66 |
24/01/2007 |
Funding of NIPP |
23,878,195.65 |
|
67 |
24/01/2007 |
Funding of NIPP |
676,569.29 |
|
68 |
24/01/2007 |
Funding of NIPP |
17,702,429.92 |
|
69 |
21/02/2007 |
FGN Investment Ibom Power Project |
80,000,000.00 |
|
70 |
22/02/2007 |
Funding of NIPP |
21,424,090.00 |
|
71 |
22/02/2007 |
Funding of NIPP |
495,448.37 |
|
72 |
22/02/2007 |
Funding of NIPP |
2,283,586.73 |
|
73 |
22/02/2007 |
Funding of NIPP |
922,101.95 |
|
74 |
26/03/2007 |
Funding of NIPP |
19,478,790.00 |
|
75 |
26/03/2007 |
Funding of NIPP |
3,326,171.62 |
|
76 |
26/03/2007 |
Funding of NIPP |
65,633,762.84 |
|
77 |
26/03/2007 |
Funding of NIPP |
15,575,892.08 |
|
78 |
26/03/2007 |
Funding of NIPP |
72,198,369.10 |
|
79 |
30/03/2007 |
Funding of NIPP |
925,688.42 |
|
80 |
30/03/2007 |
Funding of NIPP |
5,014,789.41 |
|
81 |
30/03/2007 |
Funding of NIPP |
6,374,714.87 |
|
82 |
23/04/2007 |
Funding of NIPP |
1,268,512.92 |
|
83 |
23/04/2007 |
Funding of NIPP |
613,680.33 |
|
84 |
7/5/2007 |
Funding of NIPP |
9,065,250.60 |
|
85 |
7/5/2007 |
Funding of NIPP |
4,696,506.58 |
|
86 |
11/5/2007 |
Funding of NIPP |
1,439,754.65 |
|
87 |
11/5/2007 |
Funding of NIPP |
3,392,985.12 |
|
88 |
22/05/2007 |
Funding of NIPP |
34,855,231.34 |
|
89 |
22/05/2007 |
Funding of NIPP |
14,430,984.94 |
|
90 |
1/6/2007 |
Funding of NIPP |
10,915,580.27 |
|
91 |
1/6/2007 |
Funding of NIPP |
227,338,683.25 |
|
92 |
1/6/2007 |
Funding of NIPP |
698,686,293.00 |
|
93 |
1/6/2007 |
Funding of NIPP |
2,908,776.50 |
|
94 |
5/6/2007 |
Funding of NIPP |
13,992,307.78 |
|
95 |
5/6/2007 |
Funding of NIPP |
23,320,597.30 |
|
96 |
5/6/2007 |
Funding of NIPP |
9,008,288.91 |
|
97 |
6/6/2007 |
Funding of NIPP |
2,481,213.73 |
|
|
TOTAL |
|
$3,974,394,148.82 |
The
Economic Confidential obtained this table from the
submission of RMAFC at the Public Hearing of House Committee on
Power and Steel in March 2008 |
