APC, PDP govs disagree over oil revenue sharing
The Governor of Bauchi State, Bala Mohammed, has revealed that state governments have yet to benefit from the improved revenue generated by the oil sector, as the remittances are not being properly credited to the Federation Account.
The governor, who also serves as the Chairman of the People Democratic Party Governors forum, urged the Federal Government to provide a clear and detailed explanation to the public as to why the revenues that have been collected are not being properly remitted for distribution and sharing among the three tiers of government as stipulated by the law.
The governor disclosed these when the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, paid a courtesy call at the government house ahead of the 2024 Conference for the National Council on Finance and Economic Development ongoing in the state.
He stressed that it should be considered nothing short of a miraculous work that States are yet to benefit under the current minister despite being one of the biggest oil-producing nations.
The PUNCH reports that NNPCL is a major revenue-generating agency in Nigeria, operating as the national oil company in charge of the management, sales, etc, of the country’s crude oil and gas, among other key functions.
It remits revenue from crude oil sales to government coffers.
But in recent years, the NNPC remitted literally zero funds to the Federation Account due to the payment of subsidy on Premium Motor Spirit.
Checks by our correspondent showed that the national oil firm didn’t add a single naira to the federation account in 2022.
It said fuel subsidy stopped the revenue-generating firm from remitting taxes and royalties to the Federation Account, as well as halted the company from making a profit.
But the former Chief Financial Officer of NNPCL, Umar Ajiya, in a documentary earlier this year, confirmed that the removal of subsidy had made the company start making remittances into the Federation Account.
“We have now begun to pay dividends to the federation. We are also paying our due obligations in terms of taxes and royalties,” he stated.
The company further stated in the documentary that the end to subsidy enabled it to contribute N4.5tn to the Federation Account in nine months.
“For the first time in a long time, NNPC Ltd in 2023 contributed to the Federation Account, accounting for N4.5tn between January and September 2023,” the national oil company stated.
Additional checks also revealed that NNPC contributed N431.06bn of its accrued revenue to the federation account in the first seven months of 2024.
Stakeholders had expected improved disbursement following the removal of fuel subsidy by the current deregulation of the sector, which increased petrol prices by 490 per cent.
But commenting, the governor complained that it’s yet to see any changes.
He said, “It’s a miracle that we are one of the biggest oil-producing nations, but we have not benefited for some time since you came on board.
“You have to explain that this is what you are going through. That is inclusion. And if you don’t say it, nobody will know. But, some of us know. We call this leadership and responsibility.”
“You have to make our oil and gas sector produce. Not only to produce and sell but put it in our Treasury for distribution and sharing.
“You must provide financial services to us at subnational. Financial services that will help us to enhance our productivity, and also use the resources wisely. Because without us, there will be no Federal Government.”
Responding, the ruling All Progressives Congress have slammed governors elected on the platform of the Peoples Democratic Party to prove that they have not benefited from the crude earnings under the current administration of President Bola Tinubu.
In an exclusive interview with The PUNCH, Deputy National Organising Secretary of APC, Nze Chidi Duru, urged the Chairman of the PDP Governors’ Forum and Bauchi State Governor, Senator Bala Mohammed, to always seek clarification before running to the public with unsubstantiated argument.
He said, “Our call at all points in time is that opposing views are welcome in as much as they are constructive towards nation-building, and they are not views expressed only because they want to play to the gallery. If his view is to be taken seriously, it must not be generic and verbose. It must be specific and concrete.
“Senator Mohammed must put down those evidence on the table for further elaboration. It is only at that point that we can then, as a political party, venture to take on the issues in a very objective manner. We have seen clamours of this before now and when you dig further, you will find no substance in it.
“So, by and large, it is welcome, and our call would be that he put the facts. We have always known that proceeds that ought to go into the consolidated revenue account of the country are not things done in an obscure manner. They are things that are done transparently.”
While stating that the APC government is not averse to correction, Duru demanded Mohammed present sufficient evidence to back up his claim, especially now that virtually every Nigerian knows each state earns more allocation under the current administration.
According to him, similar alarms raised in the past had turned out to be mere gaslighting on the part of those who want the Federal Government to look bad before the public.
“It is important again to note that this is the first time in the history of our country that more money has gone into the hands of the various tiers of government at various levels. At the state level and the local government level. So, one would be interested to know what these enormous resources have been deployed at those levels and used in the various states and tiers of government.
“So, the party and the government are not averse to any constructive criticisms or further feedback or data that would help the government to plug in the various loopholes that would bring in money. At the end of the day, these monies are not just meant for the federal government. It is not meant for the APC government or the Tinibu government. These are monies meant for distribution to the states, the local government as well as the federal.
“So, as much as the federal is interested in receiving more money, I would also believe that the states and the local government are also interested in receiving more money. The only way they can make more money or get more money on top of what they are getting is to point out if there are recognisable leakages in the system that need to be blocked.
“If the money that needs to come into the consolidated account is not coming in and is pointed out, the government would make the necessary effort to make sure that those monies are coming into the coffers of the government. This is where I think that the opposition should help headline and spotlight what needs to be done to make the country a much better place than is currently the case,” he stated.
The NNPCL Spokesperson, Femi Soneye, didn’t respond to calls, texts and WhatsApp messages sent to his phone lines to clarify the situation.
