Home / Leadership / REPS DEMAND EVIDENCE OF $11B WITHDRAWAL FROM ECA.

REPS DEMAND EVIDENCE OF $11B WITHDRAWAL FROM ECA.

THE House of Representatives has requested documentary evidence of over $11 billion withdrawn from the Excess Crude Account (ECA) between 2005 and 2007 during former President Olusegun Obasanjo’s administration.

Chairman of the Ad-Hoc Committee on Power Sector Reform and House Leader Alhassan Ado Doguwa issued the directive after a presentation before the committee by Accountant General of the Federation (AGF) Ahmed Idris.

Doguwa also queried the discrepancies in the amount withdrawn from the ECA; the N1.3 trillion announced by the Federal Ministry of Finance in its submission before the committee; the need for clarification on an additional $2.9 billion withdrawn from the ECA; another N600 billion assurance facility paid in 2019; and N701 billion loan given to the Nigerian Bulk Electricity Trading (NBET) company between 2017 and 2018.

It was gathered that former President Obasanjo informed the National Assembly via a letter Ref. No: PRES/134 of September 9, 2005, that $2,859,390,31.61 was released from the Excess Crude Savings account for the National Integrated Power Projects (NIPP) from 2005 to 2007.

Idris told the committee that $8.234 billion was expended between 2005 and 2007 from the ECA as approved by the National Economic Council (NEC).

The AGF document to the National Assembly said: “You may wish to note that mandates were issued to the Central Bank of Nigeria (CBN) for the total sum of $3,068,167,378.92. However, mandates for the sum of $364,513,747.31 were not applied by CBN and the total sum of $364,513,747.31 was reversed.

“Subsequently, approval was given to use part of the unapplied mandates for the payment of $155,736,700 to Kaztec Engineering Ltd, leaving a balance of $208,777,047.31 as analysed in the summary and Ledger.

“On 19th June 2008, the National Economic Council approved the sum of $5.375 billion be sourced from Excess Crude Savings Account by Federal, States and Local Government Councils in the sum of $2,463,448,500, $1,948,244,000 and $963,307,500 respectively and to be utilized on the Emergency Power projects. The total amount withdrawn for the power project from ECA was $8,234,390,331.61”.

He added that a letter dated November 23, 2005, with Ref. No: PRES/87/111 signed by Taiwo Ojo who was Special Assistant to the President in reference to a letter with Ref. No: FMP&S/HM/ABJ/033 dated 22nd November 2005, conveyed Mr. President’s approval of $2.5 billion (N309.7 billion) for the implementation of Niger Delta Integrated National Power Project.

The breakdown of the funding of the Niger Delta Power Holding Company (NDPHC) and National Integrated Power Projects contributed by the three tiers of government showed that the Federal Government contributed $3,773,952,839.22 (45.83%); States contributed $2,984,670,057.16 (36.25%) while Local Government Councils contributed $1,475,767,435.23 (17.92%).

The House Leader observed that the President’s letter (Ref. No: PRES/134 dated 9th September 2005) sent to the President of the Senate and the Speaker of the House of Representatives, referred to by the AGF could be a mere notice for the record or normal record-keeping, hence the need to produce the copies of approval for the $2.9 billion, being the clearing point for all financial transactions for the Federal Government.

Responding to questions on the refund of the $8,234,390,331.61 withdrawn from the Excess Crude Savings Account and the privatisation proceeds as encapsulated in the President’s letter, the Accountant General said “So far the treasury has not seen anything being paid back. Yet efforts are ongoing towards this direction”

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