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.


Signed

Ibim Semenitari
Commissioner of Information and Communications,
Rivers State

https://www.facebook.com/Riversstategov/posts/606865419375070

More questions than answers.....

Well articulated questions for Madam to respond to?

Don't waste your time asking Madam NOI these questions because her reply would be more of theories than a robust reply backed with figures.

Ameachi a$$ must be boiling seeing lamido a$$ on fire...

@topic ameachi is becoming dumb....

He confirmed that he received 53billion naira...

The money he said was statutory allocation of the state from the federation account.....

there was shortfall in revenue there by the federation account was funded from the excess crude account ,there go d $5billion and he was a party to it including the remaining govt...

Ok he claimed that the federation account was funded by Oil and tax revenue ... And Oil accounting for 90% ....was he not aware of the crude theft, how come d federation was able to Fund its account with Oil revenue ,when we have 56% of Oil theft.....and d nation loss $89 million to crude Oil theft..........

So is ameachi telling us dat despite d crude Oil theft nigeria got more than a enough to Fund the federation account.....if so why did ngf chaired by him point to the Eca account, advising fg to Fund the revenue shortfalls......and set up commitee headed by uduaghan to check crude Oil theft.....

I trust noi , she will soon fire ameachi a$$

Barking as usual.
Beating around d bush.
#Arrant nonsense#

lincolnj88: Ameachi a$$ must be boiling seeing lamido a$$ on fire...

@topic ameachi is becoming dumb....

He confirmed that he received 53billion naira...

The money he said was statutory allocation of the state from the federation account.....

there was shortfall in revenue there by the federation account was funded from the excess crude account ,there go d $5billion and he was a party to it including the remaining govt...

Ok he claimed that the federation account was funded by Oil and tax revenue ... And Oil accounting for 90% ....was he not aware of the crude theft, how come d federation was able to Fund its account with Oil revenue ,when we have 56% of Oil theft.....and d nation loss $89 billion to crude Oil theft..........

So is ameachi telling us dat despite d crude Oil theft nigeria got more than a enough to Fund the federation account.....if so why did ngf chaired by him point to the Eca account, advising fg to Fund the revenue shortfalls......and set up commitee headed by uduaghan to check crude Oil theft.....

I trust noi , she will soon fire ameachi a$$

I thought you read where he said at no time did he attend a meeting where a $5billion deduction from the ECA was discussed? You have to produce your proof that he 'was a party' to it. The ECA belongs to the Federation, and so, the FG cannot unilaterally deduct money from the account to share among the three tiers of Government without all the parties agreeing to it.


You claim we are losing 56% of our daily crude oil production to oil theft? This is contrary to the FG's claim. Moreover, is it not silly for you to refer to Amaechi as dumb when the blame on crude on theft rests solely at the feet of the FG? Are you not ashamed while trying to defend the FG to state that we've lost a whooping $89billion to oil theft in less than a year? Isn't that more than our 2013 National budget? You mean we are losing close to 1.4million barrels(56% of the projected daily production of 2.5million barrels) a day to oil theft? You are quoting fictitious figures to feel intelligent, huh? Dumbo!!!


He said the only time they requested for deduction, the amount involved was $1billion. Is $1billion same as $5billion? The answer to all these problems is resource control, there is so much secrecy in the management of our resources through this feeding bottle federalism.


These are the type of questions every Nigerian must ask and demand answers for, from the managers of our economy.

Ok o

All of u will give account someday

When governor ameachi said his government was ochestrating a response to the minister, i did'nt know it'll be this detailed and gut renching...listening to ameachi on rythm f.m on thursday you'll realise non of his detractors can stand him in a public debate so they hit and run.

ABEG I NO COMMENT

Amaechi, how much have you stolen from Rivers state?

Amaechi is making point here no one is applauding him. all dis questions deserve answers. abegi LIKE this to show we support amaechi , on dis matter only o

Ameachi now behaves like Rochas

Mittttttttttttccccccccccccchhhhhhhhhhhheeeeeeeewwwwwwww! God will save nigeria from all these mess.

israel007: All of u will give account someday

What does that mean? Appointed and elected officials should not be questioned?

We are not zombies!

Nigerians made mistake by electing GEJ as president, and GEJ made mistake by appointing NOI as economy coordinating minister.

For those who do not know Amaechi before he became Gov'nor he was the Speaker of the RSHA for eight years under Dr Peter Odili. That government surpassed Ibori's records in financial recklessness. But Amaechi has NEVER asked Odili questions because he made him. He who must go to equity must go with clean hands.

Jeel: Ameachi now behaves like Rochas

Wow!

Yeye response. WHo wants to hear your fake response.

1. If you knew this much, why didnt you also know where the money you ate was from?

2. You should have rejected the 56 billion and demanded that they give you a full record of the accounts so you will be sure you were getting the right share. But you collected and ate the money and fueled your nation wide loitering before coming out to cry wolf!

3. You made a categorical statement that $5 billion was missing. But now, you are asking for clarification. Isnt that a stup1d thing to do. Why didnt you ask for clarification first before making your conclusions.

4. The information you asked are all available in the various ministries in charge, particlarly the petroleum ministry, Why not go there and get what you need instead of trying to distract the hard working lady from her duties just because she has blocked all the loopholes where you people embezzle money?

5. If you think the woman is as jobless as you and will continue to waste her energy in the public space to fight your shameless battles, you are mistaken. You have time because you are jobless and you can afford to rigmarole around the country meeting with APC leaders and attending Nollywood parties. Madam has no such time and she will not engage you in your needless and tactless joblessness.

6. She has answered you already that you are a party to the money you collected. You have goofed and only showed you are trying to play cheap politics. That is why it took you several days to put together a one page response without real facts or data, just conjectures and diversionary questions.

Keep playing your stup1d politics. You are on your own

Politics is truly a dirty game,but in Nigeria,its a dirtier game..only in Nigeria,someone can be accused of crime by someone committing same crime,like PDP accusing APC of rigging during election. Amaechi is no angel,or saint.

9ja politics!!!!
Pls here is an info for you
List of winners of NLNG Scholarship award
See full list and how you too can win next time
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isale_gan2:

What does that mean? Appointed and elected officials should not be questioned?

We are not zombies!

You are not a zombie? So why are you not asking questions of Amaechi? Ask him why he has abandoned rivers state and is now gallivanting around the country and beyond fighting with his shadow? Ask his from which monies he is making these attrocious trips doling out millions? Please ask him why he bought a private jet for himself with state money? Please ask him what has happened to the white elephant monorail project.

Do please ask him all these and more

Okada, Abeg drop me here. This is becoming interesting.

I think APC should consider Amaechi to be part of the presidential ticket. Amaechi will be unstoppable in a one on one debate. Pair Amaechi with someone like Buhari.

The Same questions could be asked of Gov. Amaechi Of the N56billion He has recieved from the federation Account,
What has he done with it?
Where does he get the money to fund all the anti GEJ forums and conferences with his group of G7 govs?
Can Amaechi render account of the N56 Billion of the rivers state sovereign wealth to the people of rivers state?
What has amaechi achieved during his second term mandate in rivers state to improve the lots of the citizens of that state?

Until Amaechi sets the record straight on the issue of accountability of his state funds which he is the custodian, He is not in any position to demand accountability from anyone including the FG.

Na wao...all dis people jst dey share share billions btwn demselves..when d thing go reach us na?...


Hehehe..barely a month on NL and 28th to comment on fp, am coming up fast..
thank u all

I think we all should be honest here and ask Amaechi to live that type of life he want to see in others. Amaechi should tell people of River State how much he have received from federal allocation from january till date and his expenditure then and only then will he stand on a moral ground to ask for such from federal government.

space reserved mean while check my signature

I love my Gov so much. Amaechi God wil continue to bless u