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House to investigate FG’s indiscriminate withdrawal of N114 billion

The House of Representatives is investigating what it has described as “indiscriminate” withdrawals from the Federal Government’s Stabilization Fund, to the tune of N114 billion … Continue reading House to investigate FG’s indiscriminate withdrawal of N114 billion


House of Rep

The House of Representatives is investigating what it has described as “indiscriminate” withdrawals from the Federal Government’s Stabilization Fund, to the tune of N114 billion in the past eight months.

In a motion brought before the House, Rep. Haruna Fatai alleged that N114 billion was withdrawn from the Stabilization account, meant for funding deficits in the budget when the oil price is below the bench mark price, and used for certain expenditures not allowed for in the budget.

The House made the charge Tuesday, a day after it had cautioned President Goodluck Jonathan to curb the nation’s rising debt.

Jonathan’s administration has come under fire for policies that have depleted savings even as the nation’s debt profile continues to soar since he assumed power in 2010.

As of December 31, 2011, Nigeria’s external debt which was wiped clean by the Paris club in 2004, stood at US$ 5.7 billion, from US$ 4.5 billion in 2010 and U$ 3.9 billion in 2009, according to the Debt Management Office.

The President has also asked the National Assembly to approve an $8 billion line of foreign credit, which will fund the “pipeline projects” and bring the nation’s debt to $14 billion.

As of December 31, 2011, the nation’s external debt stood at US$ 5.7 billion, from US$ 4.5 billion in 2010 and U$ 3.9 billion in 2009, according to the Debt Management Office.

The House, on Tuesday, gave Jonathan 60 days within which to implement Section 42 of the Fiscal Responsibility Act of 2007 which stipulates a debt ceiling for government’s borrowing and foreign debt.

Lawmakers today accused Jonathan of turning the account to a “slush fund”.

“This account being a buffer against oil price shock, spending from it should be guided by caution and great circumstance in order to maintain a sound fiscal policy,” said Haruna Fatai, who led the call for a probe of spending from the account.

The House committees on Appropriation and Finance are to investigate the amount withdrawn and what the funds were used for; a report on the matter is to be submitted in four weeks.