Buhari aiding scam in NNPC through FAAC deductions
By Jeph Ajobaju, Chief Copy Editor
Abuja and the 36 states are heading for another fracas over N950 billion Federation Account remittance the Nigerian National Petroleum Company (NNPC) plans to deduct for fuel subsidy, which Benue sees as a scam aided by Muhammadu Buhari.
States’ Finance Commissioners are expected to meet soon to coordinate response to the plan to make a deduction that will reduce remittance to the Federation Account Allocation Committee (FAAC) shared by the three tiers of government.
Buhari on 15 February transmitted the 2022 Appropriation Act (Amendment) Bill to the National Assembly (NASS) seeking approval for a supplementary budget of N150 billion
He sought approval for another N2.557 trillion to extend payment for fuel subsidy.
Senate President Ahmad Lawan and House of Representatives Speaker Femi Gbajabiamila read out at each Chamber’s plenary Buhari’s letter dated 10 February.
The letter reads in part: “An additional provision of N2.557tn will be required to fund the petrol subsidy in 2022. Consequently, the Federation Account (main pool) revenue for the three tiers of government is projected to decline by N2tn, while FGN’s share from the account is projected to reduce by N1.05tn.”
That N1.05 trillion out of N2 trillion will be deducted from Abuja’s account for fuel subsidy means the balance N950 will be deducted from the accounts of states and councils.
The whole N2 trillion will be deducted from source by the NNPC.
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Buhari condones scam in NNPC, says Benue
Benue Finance Commissioner David Olofu told The PUNCH that states will continue to have it tough with the redirection of the huge amount of money meant for subsidy payment.
Olofu, who is also Finance Commissioners Forum Chairman, warned that Nigeria is in big trouble if citizens continue to allow the malpractices in the oil sector.
He said the way the oil industry is being run under the present administration shows the NNPC is above the country and more powerful than the government.
He also slammed the NASS which he said has constitutional oversight on the NNPC but remains silent over its infractions of the law.
Olofu reiterated that “[Buhari] is the Minister of Petroleum and there is nothing happening in the oil industry that doesn’t have his approval.
“So we expect that he should show some transparency in the operation of NNPC, particularly the subsidy because he said during his campaign that subsidy in the country is a scam, so why will he be President now and condone it?
“There is nothing needed to be said that has not been said either by the government of the day or opposition, it is now a national matter.”
Asked if states are not going to have it tough with deductions from the FAAC, Olofu insisted that “states have always been having it tough and they will continue to have it tough”.
He urged all Nigerians to show interest in what is happening in the oil industry, saying, “The National Assembly has oversight function but their silence over this issue is suspect.”
Ekiti to interrogate Abuja’s unilateral decision on subsidy
Ekiti Finance Commissioner Akin Oyebode said the position of any state on whether it agrees to the deduction or not is meaningless because the federal government has already adopted it on behalf of states.
“We have often said that states should be allowed to debate the merit of the decision or that the federal government should simply bear the burden from its own share of revenues,” he told The PUNCH.
Oyebode argued that Ekiti, which consumes less than one per cent of the petrol used nationally, having to pay a substantial part of subsidy goes against the principle of federalism.
“We all read the President’s letter in the media, but we shall be interrogating this at the next FAAC meeting.
“I personally would like to ask the question in specific details of what this budgetary provision entails. Is it covering the federal government’s portion of subsidy payment or all of the payments?
“In the event that it is only covering the federal government’s portion of the subsidy payment, where was the decision taken?
“Should it not be a decision that should be taken at FAAC so that the committee should be asked to deliberate whether or not subsidy payment should be deducted and from FAAC receipts?”
Other critics of FAAC deduction for fuel subsidy
Enugu chapters of both the Trade Union Congress and Association of Civil Servants (ACS) also oppose redirecting to pay subsidy, N950 billion that ought to go to states through the FAAC.
They warned that the federal government run by the All Progressives Congress (APC) plans to plunge Nigeria into the ditch by diverting funds to pay for petrol subsidy which Abuja had described as a fraud.
Ben Asogwa (Enugu TUC Chairman)
“Our leaders in this country are treating us as though we are fools. Mr President should know that we cannot continue to watch while they plunge Nigeria into the ditch.
“They know where they get the billions and trillions that they embezzle and spend lavishly but when it comes to fuel subsidy, they will remember that there is no money.
“The federal government has allowed the corruption in the oil sector to grow wings and eat into the fabric of our nation’s economy. Why do they want to rest their inabilities on states?”
Chukwuma Igbokwe (Enugu ACS Chairman)
“It is assumed that if the federal government implements that, it will likely affect state finances. And so, anything that will affect state finances and in turn affect payment of salaries and pensions in the state is not agreeable to us as a union.
“So we’ll request that the federal government and states find a way of adjusting whatever, so that it would not affect payment of salaries and pensions because basically every state now is relying on federal allocation to pay salaries and pensions.
“If you withdraw N1 trillion from states’ allocation to pay subsidy, it will definitely affect our salaries and pensions. Last Christmas we got our salary very late, almost on December 24, 2021 because the FAAC did not resolve their issue.”
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