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Nigeria’s auditor-general says excess crude account is illegal

Nigeria’s auditor-general says excess crude account is illegal

- The auditor-general of the federation, Anthony Ayine spoke on Excess Crude Account (ECA)

- Ayine said federal government should legalise its continuous maintenance of the ECA

- He said there was no legal authority for the creation of the Excess Crude oil/PPT/Royalty Account which is operating contrary to the provisions of the constitution

The auditor-general of the federation, Anthony Ayine, has called on the President Muhammadu Buhari government to legalise its continuous maintenance of the Excess Crude Account.

Ayine said: “This observation has been consistently mentioned in my previous reports since the year 2007 without any positive action taken by the federal government to address this anomaly.”

Premium Times reports that reports have it that about N361 billion (361,230,422,517.15) classified as royalty was deducted from total oil and gas revenue collected in 2016 before the balance was paid to the federation account.

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According to the reports, “Examination of records and documents presented to the Audit Team in respect of the Excess Crude Account (ECA), revealed that a sum of N361,230,422,517.15 summarized below and classified as PPT/Royalty was deducted from total oil and gas revenue collected before the balance was paid to the Federation Account.

“These deductions would appear to contravene the provisions of Section 162 (1) of the Constitution of the Federal Republic of Nigeria, 1999 which states 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’.”

The report noted that it was noted by the audit team that there was no legal authority for the creation of the Excess Crude oil/PPT/Royalty Account which is operating contrary to the provisions of the constitution.

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It added: “Efforts made by the audit team to obtain legal authority for the creation of Excess crude Oil/PPT/Royalty Account proved abortive.”

The report recommended that relevant government agencies and Federation Accounts and Allocation Committee, FAAC, should initiate the process to legalise the creation of the Excess Crude Oil/PPT/Royalty Account through the National Assembly.

Meanwhile, Legit.ng had reported that oil markets climbed on the back of a drop in the number of United States rigs drilling for more production and as the U.S. economy continued to create jobs, which industry hopes will drive higher fuel demand.

The Brent sweet crude was at 65.70 dollars per barrel, up 21 cents, or 0.3 per cent, from their previous close.

“A falling rig count and the strong employment data may have helped support prices," said William O’Loughlin, investment analyst at Rivkin Securities.

The U.S. economy added the biggest number of jobs in more than 1-1/2 years in February, with non-farm payrolls jumping by 313,000 jobs last month, the Labor Department said on Friday, March 9.

What will Nigerians do if FG increases fuel pump price to N180/litre? - on Legit.ng TV:

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Source: Legit.ng

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