The Nigeria Extractive Industries and Transparency Initiative (NEITI) has revealed that the Federal Government diverted N543.63billion for Natural Resources Development to fund the Independent National Electoral Commission (INEC), budget deficits and the Nigeria Armed Forces.
According to the report, the “Natural Resources Development Account was established to develop alternative mineral resources. The total revenue received from 2012 to 2016 was N486.26bn.
“Out of this amount, the statutory allocation was N374.15bn from both mineral and non-mineral revenue.
“A review of disbursement showed that N543.63bn was released for various projects in the period, meaning disbursement outstripped inflows by 11 per cent,” the report stated.
Adding that; “contrary to the purpose of the fund, it served as a borrowing fund for the Federal Government to meet its obligations in areas such as budget deficits, national security, Independent National Electoral Commission, Nigeria Armed Forces, among others.”
NEITI further revealed that revenue allocated specifically for ecological problems was used for other purposes other than the reason why the Ecological Fund was established.
“The utilisation of the fund does not match the purpose for which the fund was established.
“For instance, for the loan of N93, 768,951,164 released to the Federal Government for funding of budget deficits and advance to states and Local Governments to meet shortfalls in their revenue.”
These disbursements were made as loans, but most of the loans granted seem not recoverable the report says.
As for the Excess Crude Account which was established to save revenue generated from increases in crude oil prices, the NEITI report revealed that within 2012 – 2016, N4.35trillion was transferred to the account.
The funds in the Excess Crude Account were to be used whenever there was a shortfall in the revenue.
David Chima is the Group Head (Editors) at Naija Buzz News. He is a very experienced Journalist. He studied Mass Communication at the Nuhu Bamalli Polytechnic Zaria, Kaduna State, before proceeding for Advanced Studies in Mass Communication (Journalism) at the Federal Polytechnic Bauchi, Bauchi State. He previously served as the Head Senior Reporters and Publishers at 1Push.Ng and eventually Naija Buzz News. Chima is a lover of football and a very strong supporter of Barcelona Football Club Spain.