Iyabo Obasanjo Bill on excess crude account suffers setback
From AMOS DUNIA, Abuja
Friday, June 20, 2008


•Senator Iyabo Obasanjo-Bello
Photo: Sun News Publishing
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Moves by Senator Iyabo Obasanjo-Bello to give legal backing to the reserved excess crude account created by former President Olusegun Obasanjo suffered a major setback on Thursday as senators considered it an attempt to legalize constitutional illegality.

The Bill for an Act to create an Excess Crude Oil Reserve Fund for the regulation, deployment, management and investment of same to safeguard the long-term interest of Nigerians through the use of partof the excess revenue accruing to the Federal Government in the consolidated revenue fund account and proceeds from other sources, was sponsored by Senator Obasanjo-Bello.

The bill, which was slated for second reading on Thursday generated some rowdiness on the floor of the Senate. This started less than 12 minutes after the commencement of the session, during which Senator Iyabo Obasanjo-Bello stood up to present her lead debate on the bill.
Kicking against the bill, Senator Danlami Ikenya, (PDP Taraba), who cited Order 10 (1) of the Senate Standing Rule, noted that the Senate did not constitute a quorum required for a normal seating and advised that the proceedings should be stopped.

The Deputy Senate President, Senator Ike Ekweremadu, who presided, ruled that the number of senators present was more than one-third required for the Senate plenary.
Effort by Senator Uche Chukwumerije, who said that the number of senators was less than the mandatory 37 did not impress the presiding officer to change his ruling as he insisted that it was far above the required figure.

Earlier, Senator Ikechukwu Obiora drew the attention of the Senate to section 162 of the Constitution, and frowned at the idea of creating an Excess Crude Account. He said that it was wrong for the Senate cum the National Assembly to give legal backing to the creation of an excess crude account, which is in clear violation of the provision of the constitution.

He was, however, overruled on the premise that the debate on the Bill had not commenced since the sponsor had not commenced the lead debate.

Sensing danger, Senator Obasanjo-Bello quickly raised a point of Order citing Order 89 which states: "The senator in charge of a bill may make a motion without notice for its withdrawal either before the commencement of public business or on the order of the day for any stage of the bill being read." She therefore announced her withdrawal of the bill.

Speaking to journalists after the Senate plenary session, Senator Obiora said that the Bill suffered what looked like a defeat owing to senators’ belief that every kobo earned by Nigeria as a nation should be paid into the Federation Account.

"The only first charge on that account is the generation which has been explicitly provided for by the constitution in the same section 162. What has happened in the past, there has been tendency to confuse the Federation Account, which is the fund for the nation comprising the three tiers of government, the federal, the state and the local government. There has been a tendency to confuse the Federation Account, with the consolidated revenue of the Federal Government as a tier of government. The consolidated revenue account of the Federal Government is clearly specified in section 80 of the 1999 constitution," Senator Obiora said.

He explained that the sole doctrine of excess crude account exists for a tier of government which has budgeted certain amount in the fiscal year, at the end of which there is a differential amount which the tier of government can call as excess.

"The money must be paid in because you don’t know what you are getting; you don’t know the receipt we are going to make from the customs or other revenue we are going to get. It is actually an aberration and as a matter of fact a rollover of the dictatorship we have had over the past eight years," Senator Obiora said.