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Drama as Iyabo Obasanjo Withdraws Excess Crude Account Bill

Posted by From Sufuyan Ojeifo in Abuja on 2008/06/20 | Views: 630 |

Drama as Iyabo Obasanjo Withdraws Excess Crude Account Bill


There was a mixture of drama and disorder yesterday on the Senate floor as a bill seeking to restructure and legalise the excess crude account was abruptly withdrawn by its sponsor, Senator Iyabo Obasanjo-Bello (Ogun Central).

There was a mixture of drama and disorder yesterday on the Senate floor as a bill seeking to restructure and legalise the excess crude account was abruptly withdrawn by its sponsor, Senator Iyabo Obasanjo-Bello (Ogun Central).

The controversial Excess crude Account was introduced under the administration of former President Olusegun Obasanjo.
The withdrawal of the bill was hinged on its infringement on Section 162 (1) of the 1999 Constitution.

The section states:'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, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigerian Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory."

Obasanjo-Bello's bill entitled: 'A bill for an Act to establish the excess Crude Oil Fund" was intended to legalise the Excess Crude Account through some form of restructuring.
Specifically, the bill was for an Act to create the Excess Crude Oil reserve Fund for the regulation, deployment, management and investment of the same.It was in the long run intended to safeguard the long-term interest of Nigerians through the use of part of the excess revenue accruing to the federal government in the consolidated revenue fund account and Proceeds from other sources.
But no sooner had the bill been announced by the Senate Leader, Senator Teslim Folarin for second reading yesterday than disorder ensued in the Senate.
Obasanjo-Bello, who was called upon to lead the debate on the bill's general principles, was forced to withdraw the bill in the face of opposition by his colleagues on the basis of constitutional infraction.
Senator Ikechukwu Obiorah (Anambra South) who spearheaded the move against the bill asked the 36 State Governors to head for court to fight the illegality manifesting in the continued maintenance of the excess crude account.
The bill proposed that 15 percent of excess proceeds from the federation account should be paid into a special fund which shall direct itself as a special purpose investment vehicle to shore up the country's financial strength in the future.Immediately the bill was introduced, senators began to discuss in groups, causing disorderliness in the chamber.
Obasanjo-Bello had to plead with the Deputy Senate President, Senator Ike Ekweremadu, who presided at the session, to ask Senators to maintain decorum owing, according to her, to the serious implications of the bill.
While waiting for Ekweremadu to bring back order to the chamber, an opposition senator made a loud proclamation, saying 'we will kill it''.
But senators who were supportive of Obasanjo-Bello prevailed on her to quickly withdraw the bill to avert its being killed.
The first attempt to stop the consideration of the bill was made by Senators Joel Danlami (PDP, Taraba) and Uche Chukwumerije (PPA, Abia North) who complained of lack of quorum.The Deputy Senate President overruled them.
But Senator Obiorah cited Section 162 of the 1999 Constitution to reinforce his opposition to the bill, pointing out that the Excess Crude Account was illegal and unconstitutional.
The Deputy Senate President, Ekweremadu, overruled his submission, saying that he (Obiorah) was jumping the gun because, according to him (Ekweremadu), the bill had not yet been presented.And, yielding to the advice of some of her colleagues, Obasanjo-Bello did not proceed with the presentation of the bill through her lead debate.
Coming under Order 89 of the Senate Standing Rules 2007 (as Amended), she announced her withdrawal of the bill.
The rule provides that a Senator may rise to withdraw a bill that has been listed in the Order Paper without any explanation and prior notice.

But in an interview with Senate Correspondents after yesterday's sitting, Obiorah said: 'I have made it clear that every kobo, which Nigeria as a nation earns, must be paid into the Federation Account.'What has happened in the past, (is that) there has been tendency to confuse the Federation Account, which is the fund for the nation comprising the three tier of government, the Federal, the State and the Local government with the Consolidated Revenue Fund (CRF) of the federal government as a tier of government.
'It is actually an aberration and as a matter of fact, a rollover of the dictatorship we have had over the past eight years. The so called excess crude account which the Federal government has been maintaining in the last eight years is an illegality, and unconstitutional.
'All monies must go into Federation account and be shared in line with the revenue formula approved by National Assembly and assented to by the President."Obiorah continued: 'The executive branch has been committing this error. It behoves the state Governors to go to the Supreme Court for a legal challenge.'The Supreme Court has made it clear that the only charge you can have on the federation Account is the charge created explicitly by the constitution.

'Any amount, which Nigeria, as a Federation, as a sovereign nation, receives and which is not paid into the Federation Account is an illegality. That is why I brought that constitutional point of order and that is why the bill was withdrawn.''


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