Reps Probe Jonathan Over N114bn Stabilization Account

Jonathan

House of Representatives has mandated its joint Committee on Finance and Appropriations to investigate alleged withdrawals of N114bn from the Stabilization Account by the Federal Government without budgetary  approval. The resolution followed a motion sponsored by Hon. Haruna Musa Fatahi (ANPP, Kano), in which he alleged that the federal government made indiscriminate withdrawals from the stabilisation account. The lawmaker explained that the revenue sharing laws provided for the remittance of 0.5% of funds accruing to the Federation Account to be kept in the Stabilization Account and was meant to be used in funding deficits in the budget when the oil price was below the bench mark price.

He expressed concern that within a period of eight months, about N114 billion was spent from the account by the Federal Government of Nigeria for expenditures. The prayers in the motion read: “That the Stabilization Account is meant to be used in funding deficits in the budget when the oil price is below the benchmark price.

“That the revenue sharing laws provide for the remittance of 0.5 per cent of funds accruing to the Federation Account being kept in the Stabilization Fund. “That this account being a buffer against oil price shock, spending from it should be guided by caution and great circumspect in order to maintain sound fiscal policy. “That within a period of eight months about N114bn was withdrawn from this account by the Federal Government of Nigeria for some expenditure most of which should ordinarily be budgeted for. “That most of the indiscriminate withdrawals are gradually converting the account into a mere slush fund instead of its original mandate.”

Emeka Ihedioha

The Deputy Speaker, Emeka Ihedioha, who presided over the house, referred the matter to the joint committees of Finance and Appropriations for further investigation. The committees have four weeks to submit their report.

March 30, 2012