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Amaechi Renews Controversy On Missing $5bn, Asks Okonji-Iweala To Tell Nigerians Why ECA Funds Is Used For SURE-P, Despite Savings From Partial Removal Of Fuel Subsidy

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NOI-AmaechiIn what might elicit a further debate on the controversial $5billlion purportedly missing from the Excess Crude Account (ECA), the Rivers State Government has refuted the claim by the Coordinating Minister of the Economy and Finance Minister, Dr. (Mrs) Ngozi Okonjo-Iweala that part of the money was used to fund the SURE-P and make subsidy payments to oil marketers.

Yesterday, while speaking on a radio programme monitored in Port Harcourt, Mr. Chibuike Rotimi Amaechi had said if not for his position as governor, he would have given a very crude reply to the Finance Minister on her rebuttal of his allegation during a retreat of the Nigeria Governors Forum (NGF) in Sokoto that $5 billion was missing from the ECA with nothing to show for it, but that his government will take its time to give a ‘studied’ response.

Barely 24 hours after his comment, the Rivers State Commissioner of Information and Communications, Ibim Semenitari, in a press release said Gov. Amaechi did not participate in any meeting as claimed by Mrs. Okonjo-Iweala where approval was “requested or even discussed and given” in relation to sharing of money from the ECA just as the statement raised salient questions which it said are begging for answers from the finance minister.

The statement said the “Rivers State Government finds it curious and very disturbing that our rainy day savings has been ‘shared’ in complete breach of the known procedure for doing such and in what might be considered an under the table and clandestine manner”.

The full statement below:

Dr. Ngozi Okonjo-Iweala – $5 Billion is not missing from the Excess Crude Account- The Rivers State Government’s position

In response to the warning raised by Governor of Rivers State and Chairman of the Nigeria Governors’ Forum, Rt. Hon. Chibuike Rotimi Amaechi, CON, at the 2nd Retreat of the Nigeria Governors’ Forum (NGF) in Sokoto, drawing the attention of Nigerians to the fact that $5billion is missing from the Excess Crude Account (ECA), the Coordinating Minister of the Economy and Honourable Minister of Finance Dr. Ngozi Okonjo-Iweala, put out a rebuttal stating that the claim is “shocking and false”.

The Minister went on to say “the $5billion which Governor Amaechi referred to in his statement has been shared to the three tiers of government to make up for the revenue shortfalls during the Federation Accounts Allocation Committee process”. Dr. Okonjo-Iweala also said that “part of this fund also went for SURE-P payments and the balance for subsidy payments to oil marketers”.

The Rivers Sate Government would like to address the issues as raised by the Honourable Minister:
First, the Rivers State Government wishes to acknowledge as highlighted by Dr. Okonjo-Iweala, that it received the sum of N56.2billion, for January to September 2013 as statutory allocation from the federation account.

The federation account is funded from receipts from oil and other sales (with oil accounting for over 90 percent and taxes – VAT- custom duties etc.). When more crude is produced and sold above the quantity anticipated by the budget for any given year, the funds are by law meant to be kept as future savings in a stabilization account, also known as the excess crude account.

Contrary to the coordinating minister’s claim, that “Mr. Amaechi was closely involved and actively participated in making requests to the presidency for the account to be shared for the purpose of augmenting the regular allocations from the Federation Account whenever there was a shortfall,”

Governor Chibuike Amaechi and his colleague governors have only attended only one meeting where ONE REQUEST was made for the sharing of $1billion from the Excess Crude Account. Beyond that one meeting, there has been no other meeting where it was decided that money from the ECA be shared among the three tiers of government

There is a position of the National Executive Council’s (NEC) on the matter of the Excess Crude Account. This position is that the savings in the ECA belonging to all the states is not to be touched. Indeed this is in tandem with the position of the Honourable minister that the ECA is savings for all to be set-aside for the rainy day and not to be “shared” in the manner she now seems to suggest.

The Rivers State Government finds it curious and very disturbing that our rainy day savings has been “shared” in complete breach of the known procedure for doing such and in what might be considered an under the table and clandestine manner.

The appropriate procedure as the Honourable Minster knows is that usually members of the NEC have to make recommendations to Mr. President should there be need recourse to the Excess Crude account. The Rivers State Government is certain that its Chief Executive and Governor did not participate in any such meeting where any such approval was requested or even discussed and given.

The second issue is the pertinent matter of the receipts accruing to the Rivers State Government. Since it is not procedural for states to receive allocation from the Excess Crude Account, it may smirk of mischief to suggest as the Honourable Minister did that Governor Amaechi refused to acknowledge, “Rivers State has received N56.2 billion from the Excess Crude Account between January and September 2013.”

Neither Rivers nor any other state would have any inkling that the money received by Rivers State government and other state governments for that matter were funded from the ECA. According to a communiqué issued by the office of the Accountant General of the Federation after the June allocation meeting, “the sum of N7.617 billion refunded by NNPC and the N35.547 billion from the Subsidy Re-investment Programme (SURE-P); formed part of the total distributable revenue for the month.”

The communiqué confirmed that the gross revenue for the month was N863.026 billion. This was higher than the N590.777 billion received in May by N272.249 billion. It said very unambiguously, “the higher revenue was a result of increased crude oil production due to the completion of pipeline repairs in some terminals. There was also a significant increase in non-oil revenue during the period due to the receipt of accumulated arrears on companies.”

The Rivers state government therefore finds puzzling the suggestion by the Honourable Minister that the savings for 2012 has been used to fund the budget for 2013.

For the purposes of clarity and for avoidance of doubt, the Rivers State Government may respectfully request the Honourable Minister to shed more light on the following,
· How much oil does the country produce per day?
· Clarification that the benchmark price for oil in the 2013 budget is $79?
· Is it a fact that crude oil was sold at prices that hovered around $110 per day throughout the year?
· How much exactly has Nigeria earned from its oil sales in 2013 and what percentage of the budget is funded by these receipts?

The position of the federal government has been that there are shortfalls in production but does this position also take into cognisance the over $30 differential between the benchmark price of $79 and the actual sale price which averaged $110 per barrel during the period. The position of the Rivers State Government is that the differential of over $30 should have been enough to fund the shortfall in production? Unfortunately there has been no accounting for this huge differential. Perhaps the Honourable minister may assist us in putting this in better perspective.

Governor Amaechi’s position in Sokoto was that the ECA is being managed like a piggy-bank contrary to provisions of the law and in a manner that does not allow for transparency and accountability. A position which the Honourable Minister’s rebuttal now seems to confirm, as can be noted in the third issue she raised in her response.

According to her, the SURE-P is being funded from the ECA. But the President in his broadcast had stated that SURE-P, “is designed to manage and reinvest the Federal Governments share of the savings from the partial reduction of subsidies on petroleum products.” It was not and is not meant to be that SURE-P is to be funded from ECA nor can the Federal Government unilaterally withdraw money from the ECA to balance payments to oil marketers.

Indeed the statement of the accountant general of the federation previously quoted lays credence to this position – “N35.547 billion from the Subsidy Re-investment Programme (SURE-P); formed part of the total distributable revenue for the month.”

It has been the understanding of the Rivers State Government that SURE-P is funded from the extra money realised from the pump price of petroleum, which Nigerians protested against when the pump price of fuel was raised. Is the Honorable Minister telling Nigerians that the SURE-P is now being funded from the ECA! Might it then be true as was recently suggested in the National Assembly that over N500billion of SURE-P money may be missing?

The Government of Rivers State holds the office and person of the Honourable Minister in high esteem, but as a government we owe the 5.6 million Rivers people whose mandate we hold a responsibility of accountability. The issues raised by Governor Amaech were raised purely out of concern for the need for accountability and safeguarding the wealth of “future generations of Rivers people.”

It is for this purpose and to this end that we most respectfully seek clarification of the following.

· How much oil does Nigeria produce?
· Where is the differential between the oil pump prices?
· What price is our oil being sold for?
· How much have we earned from our crude oil sales in the last year?
· What percentage of budget 2013 does our crude oil sales revenue fund?
· Can the Honourable Minister assist in shedding more light on the subsidy savings since the reduction in petroleum subsidy?

As a government that is also a major stakeholder in the administration, we believe that answers to these very pertinent questions would put paid to whatever false or misleading information may have been put out or peddled in the public domain.

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4 Comments

4 Comments

  1. donjeff

    November 23, 2013 at 7:58 pm

    Ameachi you talk carelessly like a motor park boy,see who’s talking about sure p funds when you’ve not been able to pay Rivers state beneficiaries for 7 months of their stipends.

  2. Prince

    November 23, 2013 at 9:04 pm

    Amaechi u are a big fool,when u raise alarm over missing $5b did u tell us that u had agreed to share $1b out of it?power drunk like u soon u will be in jail like Ibori idiot

  3. fcf

    November 23, 2013 at 10:34 pm

    Amaechi , you’ve just proved to teeming Nigerians that your school boy rascality and cult days bragado is still with you , we thought you should have overgrown such garage dispositions. Look hear me, you will end up as Ibori, and that will mark the end of your political carrier . How on earth do you think you can rub shoulders with a serving President . Chibuike you’re too small . Would you have dared a military President ? All those your half baked illiterate colleague governors who merely passed TC2 will laugh @ you when the chips are down . You’re all rogues . God of the poor Nigerians wii judge all of you . Fools !

  4. dani

    November 23, 2013 at 11:44 pm

    Amaechi is a puppet as Nigerians we know the pupeteers,peoply who cannot clean their houses but coming out to call others dirty…

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Fayemi Presents Over N109 billion As Budget Estimate For 2021

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Fayemi Orders Resumption Of All Workers In Ekiti
Fayemi Presents Over N109 billion As Budget Estimate For 2021

Governor Fayemi

Governor of Ekiti State, Kayode Fayemi has presented the proposed budget for the 2021 fiscal year in the State.

The Governor on Monday presented a budget estimate of over N109 billion for the 2021 fiscal year.

Governor Fayemi, while presenting the budget at the State House of Assembly complex yesterday in Ado-Ekiti described the 2021 budget as “Budget of Recovery and Economic Restoration.”

Also Read: #EndSARS Protests Politically Motivated – Kogi Governor

The budget has a recurrent expenditure of N57, 997,898,982.62k while the capital expenditure has N51, 668,386,739.99k.

Fayemi, said the budget proposal presented contains the policy thrust, programmes, and vision of his administration for 2021, saying efforts shall be made to source the needed resources to fund the budget.

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National Broadcast: PDP Slams Buhari Over ‘Disappointing, Empty’ Speech – PDP

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National Broadcast: PDP Slams Buhari Over 'Disappointing, Empty' Speech – PDP
National Broadcast: PDP Slams Buhari Over 'Disappointing, Empty' Speech – PDP

Muhammadu Buhari

The Peoples Democratic Party (PDP) has blasted President Muhammadu Buhari over his nationwide broadcast over the ongoing #EndSARS protest rocking the country.

Recall that Buhari in his speech called for an end to the protest, adding that his government had already accepted and started implementing demands of the protesters.

He, however, failed to acknowledge the shooting of protesters by soldiers of the Nigerian Army at the Lekki Toll Gate on Tuesday night.

Also Read: President Muhammadu Buhari’s speech – Full text

Reacting in a statement on Thursday night by its spokesperson, Kola Ologbodinyan, the PDP said Buhari’s address was depressing and failed empathy test.

The party appealed to Nigerians, particularly the youth, to remain calm and allow a return to normal life in the collective quest for peaceful co-existence in the overall interest of the nation.

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PDP Asks Buhari To Stop Killing Of #EndSARS Protesters Across Nigeria

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PDP Asks Buhari To Stop Killing Of #EndSARS Protesters Across Nigeria

PDP

The Peoples Democratic Party (PDP) has condemned the killing of peaceful #EndSARS protesters at the Lekki Toll Gate, Lagos.

This was contained in a statement titled “EndSARS- Lekki Massacre,” signed by the PDP National Publicity Secretary, Kola Ologbondiyan, late on Tuesday.

Ologbodiyan said, “The Peoples Democratic Party, condemns in very strong terms, the killing of peaceful protesters at the Lekki Toll Gate in Lagos as well as other parts of our country.

Also Read: Shehu Sani Condemns Shooting Of #EndSARS Protesters At Lekki Toll Gate

“It is shocking that security agents and, in some cases, thugs, were reportedly deployed to end the lives of promising Nigerians. This, to say the least, is saddening.

“Those responsible for the heinous murder of the innocent and harmless Nigerians must account for their nefarious acts.

“The PDP calls on President Muhammadu Buhari to immediately direct an end to these wanton killings across our nation.

 

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