News Post

The House of Representatives during its plenary session on Tuesday, February 20, 2018 has debated the general principles of “A bill for an Act to amend the Allocation of revenue (Federation Account etc.,) Act Cap, A15 Laws of the federation of Nigeria, 2004 to establish the Excess Revenue Fund Account, and for other related Matters. The Bill was read the second time on the floor of the House.

Hon. Idisi argued the intentions of the Bill stating that “the allocation of revenue Act was established in 1982 to prescribe the basis for distribution of revenue accruing to the Federation Account between the Federal and State Governments and Local Government Councils in the States; the formula for distribution amongst the States; the proportion of the total revenue of each state to be contributed to the State joint Local Government Account.”

He averred that the amendment seeks to insert new sections to section 5 of the Principal Act viz: “There is hereby established for the Federation an excess revenue fund account which shall consist of all revenues or other money raised or received by the Federation above the revenue targets set out for the purpose of funding the budget in a fiscal year (not being revenues or other money payable under the Constitution or any Act of National Assembly into any other public fund of the Federation established for a specific purpose.

“Section 5(2) provides that: ‘No money shall be withdrawn from the Excess Revenue of the Federation except to meet expenditure that is charged upon the funds, money as authorised and/or prescribed by the National Assembly pursuant of Section 81 of the Constitution.

“Section 5(3) further provides that: “Subject to subsection, an expenditure from the Excess Crude Revenue Fund Account shall be in accordance with section 2 and 3 of the Principal Act; provided that the Federation Allocation Account Committee shall prescribe the manner of distributing such money to the Consolidated Revenue Fund for the purpose of this bill and the Sovereign Wealth Fund,” he added.

Hon. Nnena Elendu-Ukeje opined that the Excess Crude Account can only be legalized through a constitution amendment process. “Well, I think that today’s bill simply put, paid to the to the question that  we’re troubling our minds on the last motion in the House regarding the $1 billion deductions from the Excess Crude Account for the counter- terrorism war, she stated.

On his on part, the Majority Leader, Femi Gbajabiamila, backed his views on the matter by quoting section 80 of the 1999 Constitution (as amended) to emphasize that it falls within the purview of powers of the National Assembly to legislate on any account even for specific purpose. He informed that he had queried the legality of the ECA several times in the past and that the only way out is to legalize it.