Abuja- The PDP Governors’ Forum (PDP-GF) said the duty and responsibility of the Nigerian National Petroleum Corporation (NNPC) to pay revenues into the Federation Account is an imposition of law, not a matter of discretion by the corporation.
The Direction General of the Forum, Hon C.I.D. Maduabum, made the observation in a statement he issued on Thursday in Abuja.
Maduabum said that the constitutional provisions on Public Revenue was clear as stated in Section 162. (1) of the Constitution.
He said that the section states that the Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation.
He added that this was in exception of the proceeds from the personal income tax of the personnel of the Armed Forces of the Federation, the Nigeria Police Force, the Ministry or Department of Government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.
“S.162(1), defines Revenue thus: “For the purpose of subsection (1) of this section, “revenue” means any income or return accruing to or derived by the Government of the Federation from any source and includes:
“(a) any receipt, however described, arising from the operation of any law;
“(b) any return, however described, arising from or in respect of any property held by the Government of the Federation;
“© any return by way of interest on loans and dividends in respect of shares or interest held by the Government of the Federation in any company or statutory body.”
Maduabum said it was a demonstration of impunity and abuse of law for NNPC to continue to disregard the mandatory constitutional provisions above.
He added that the NNPC and other revenue generating agencies of the Federal Government have the mandatory obligations to pay into the Federation Account all its revenue after deducting legitimate cost of operations.
“ Fuel subsidy or other profligate expenditures are not part of the cost of production.
“When NNPC makes its contributions to the Federation Account, the Federal Governments share in the Federation Account can be spent by it in a manner it desires.
“NNPC cannot spend money belonging to the other tiers of government for them.
“This is the way the Constitution is designed by its authors,” adding that it cannot be changed at pleasure.
Maduabum said that the states and local governments in Nigeria bear the brunt of education, health care, water, food production, infrastructure such as roads, and increasingly the security of lives and property among others.
He said that states and local governments share of the Federation Account did not belong to governors, certainly not to PDP governors.
He added that the case made by the PDP governors communique concerns all the states and local governments in Nigeria, not only PDP.
He also explained why the PDP governors called on the CBN to strengthen the value of Niara.
He said that the implication of the fall of the Naira for cost of goods and services, including the price of food and basic needs of Nigerians is becoming unbearable for the average Nigerian.
Maduabum added that it had affected value of the recent minimum wage increases.
On the issue of mining, he said that the PDP Governors were merely asking for better coordination with state governments who administer the land under the Land Use Act.
Maduabum said the forum was surprised on the statement by the Senior Special Assistant on Media to President, Alhaji Garba Shehu on the patriotic issues of state raised by the PDP-GF in its Communique after Monday meeting in Uyo, Akwa-lbom State.
“The PDP Governors’ forum communique in Uyo was patriotic, well thought out and offered solutions to the miriad of problems facing the nation,” advising the Federal Government to accept it
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