$1bn security fund: Reps probe excess crude account

The House of Representatives yesterday mandated its finance committee to ascertain the status of the Excess Crude Account (ECA) in view of the recent decision of the National Economic Council to contribute $1 billion for the fight against Boko Haram.

The House took the decision after a long debate that ensued from a motion sponsored by Ken Chikere (PDP, Rivers) who wanted 13 per cent derivation deducted from the money for oil producing states.

The lawmaker said Section 162 (2) of the Constitution states that 13 per cent of proceeds of oil shall go to oil producing states in Nigeria as derivation fund payable to the benefiting states of AkwaIbom, Rivers, Delta, Bayelsa, Cross River, Edo, Abia, Imo, Ondo, Anambra and Lagos.

He said it appeared the 13 percent was not deducted from the $1bn and paid to the benefiting states, saying if that was not done, it would amount to double contributions from the said states and a breach of the Constitution.

He therefore prayed the House to urge the Ministry of Finance to ensure the deduction was made as well as mandate committees on finance and legislative compliance to ensure compliance.

Based on his argument, the 13 per cent would amount to about $130 million.

Speaker Yakubu Dogara however clarified that the entire amount would come from states’ share of the ECA.

The matter led to a division on the floor of the House. Dogara asked the chairman of rules and business committee, Emmanuel Orker-Jev (APC, Benue) to clarify if the House has powers to debate such matter.

Orker-Jev said based on House rules, the motion was an ancillary one and could not be debated.

Dogara therefore asked for the motion to be stepped down and mandated the finance committee to ascertain the status of the ECA with regards to whether the $1bn belongs to the states alone or it includes both the federal and local governments share.