The Nigerian Senate has given Mr Godwin Emefiele, Governor of Central Bank of Nigeria (CBN) a 72-hour ultimatum to appear before its panel to answer questions bordering on the alleged missing $9.5 million (34.3bn) interest generated from the Petroleum Profit Tax (PPT) investment.
According to Monday’s official exchange rate, the interest generated from PPT investment is equivalent to N34.3billion in local currency.
The ultimatum was issued by the Senator Matthew Urhoghide, the Chairman of the Senate Committee on Public accounts.
The committee had initially summoned the CBN Governor, following a report by the Auditor-General of the Federation which investigates the spendings of the Federal Government’s agencies.
The Senate, had in March commenced investigations on the principal funds deposited in the PPT investment accounts, the tenor and the rate of interest.
As part of its investigations, the Committee on Public Accounts summoned and questioned Ahmed Idris, the Accountant General of the Federation, on the alleged missing interest accrued from PPT, however he was unable to provide any substantial document regarding the funds.
Following the development, the Committee led by Senator Urhoghide, who represents Edo South Senatorial District, further summoned the CBN Governor to provide answers regarding the PPT accounts.
However, Emefiele failed to honour the invitation of the Senate.
The New Diplomat understands that the PPT is a tax applicable to upstream operations in the oil industry. It is particularly related to rents, royalties, margins and profit sharing elements associated with oil mining, prospecting and exploration leases.
Speaking, Urhoghide stated that the ultimatum was necessary following the failure of the CBN Governor to either appear before the committee or send a representative.
According to him, there are many issues that the CBN Governor would have to address in order to corroborate some statements of account.
He added that the apex bank Governor has till Thursday, April 1, 2021 to appear and address the issues before the Committee.
It would be recalled that the committee, two weeks ago had released a report regarding the alleged missing of $9.5million (34.3billion) interest from the PPT accounts.
According to the report, in 2016, $6million and $3.5million were credited to the PPT account as interest on funds investment, which accounted for the said $9.5million (34.3million).
The report also disclosed that the funds deposited, the tenor and the rate of the interest were not available for audit verification, alleging that the CBN and appropriate authorities are trying to cover up the funds.
The report reads, “During the examination of transfers to Foreign Excess PPT/Royalty and Foreign Excess Crude Accounts, it was observed that during the year 2016, amount totalling $6 million and $3.5 million were credited to the Foreign PPT/Royalty and Foreign Excess Crude Account as interest on funds investments. The authority for placing the funds which yielded the above interests totaling $9.5 million in deposit account, the principal sums deposited, the tenor and rate of interest were not made available for audit verification. This observation had also been a subject of my reports since 2017 without any positive response from Central Bank of Nigeria.
“Records made available for audit further revealed that the balance in the foreign PPT/Royalty and Foreign Excess Crude accounts as at 28th December 2016 were USD0.00 and USD251,826 respectively. This suggests the foreign PPT/Royalty was depleted before the year end. The Accountant General has been requested to provide the authority for the funds invested, tenor of the investment, rate of interest payable, certificate for the funds invested and forward same for audit verification.”
