The House of Representatives is to investigate the non–remittance of due taxes by the Nigerian National Petroleum Company Limited (NNPCL) into the Federation account and the accusation by the Federation Account Allocation Committee.
Adopting a motion by Hon. Uduak A. Odudoh, the House asked its Committee on Finance to carry out a comprehensive investigation into the allegations as the Revenue allocation committee had alleged that such refusal led to loss of over N2 trillion in revenue.
Odudoh said Section 162(1) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) provides for “The Federation Account” in which all revenues collected by the Government of the Federation except such exempted therein are paid.
According to him, the “Federation Account” belongs to the entire federation while the Federal Government keeps the same in trust on behalf of three tiers of Government in particular and Nigerians at large.
He said the Allocation of Revenue (Federation Account, e.t.c) Act, prescribes the basis for the distribution of revenue accruing to the federation account between the Federal, State Governments and Local Government Areas in Nigeria.
Odudoh said the fate of the National Development largely depends on how transparent and accountable relevant Government agencies and corporate entities are in the collation, remittance and distribution of revenues solely acquired.
He expressed the convinction that section 6 of the Allocation of Revenue (Federation Account, e.t.c) Act, established the “Federation Account Allocation Committee (FAAC)” to among other functions, report annually to the National Assembly in respect of the function under the Act.
He said the non-remittance of crude sales, royalties and taxes by the Nigerian National Petroleum Company Limited (NNPCL) into the Federation Account has been a reoccurring decimal and a sad narrative constituting a subject matter without opposing views.
Odudoh said the Federation Account Allocation Committee (FAAC) had severally accused the Nigerian National Petroleum Company Limited (NNPC) of short-changing it by refusing to pay over 2 trillion naira to the Federation Account from crude sales, royalties and taxes.
He said that on the other hand the Nigerian National Petroleum Company Limited averred that the Federal Government owed it over four (4) trillion naira of subsidy payments, power debt and other sundry charges and therefore would not remit until the debts are recovered.