CBN under probe for withholding excess crude investment

The House of Representatives has set up an ad-hoc committee to investigate the Central Bank of Nigeria (CBN) over its use of the excess crude account for investments.

CBN was accused of depositing $1,829,025.45 as interest on investments in the excess crude account without releasing details relating to the investment principal.

According to the Labour Party (LP) lawmaker from Edo, Esosa Iyawe, on Thursday, the auditor-general of the Federation requested the details of the investments and utilisation of funds from the Petroleum Profit tax (PPT)/Royalty and Foreign Excess Crude Account.

However, the financial regulator has flagrantly and consistently refused to provide the information needed. The auditor general revealed CBN’s non-disclosure in an annual report in 2015.

The lawmaker, who moved the motion for the CBN to be probed, said due to the apex bank withholding information, the Federal Government is unable to prevent revenue leakage, raise turnover, as well as fighting corruption.

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Disclosing the situation during the plenary, Iyawe said: “The House is also concerned 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.

“The House is further concerned 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.

“The House is disturbed that the 2016 audit report revealed the disappearance of over $9.5 million interest accrued from the Petroleum Profit Tax (PPT) Investment.

“The House is also disturbed that obscurity has consistently characterized 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.”

The CBN was directed to provide details of 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 without further delay after the required format is followed.

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