N544 billion released for various projects between 2012 and 2016 was diverted by the Federal Government to fund activities of the Independent National Electoral Commission (INEC) and the Nigerian Military. The Nigeria Extractive Industries and Transparency Initiative (NEITI) report has revealed.
According to NEITI’s report, the diverted funds were also used to fund budget deficits as against the original purpose earmarked.
The report said the figures obtained from the Fiscal Allocation and Statutory Disbursement Audit 2012-2016 showed that the N543.63Bn disbursement from the natural resources fund outstripped inflows by 11 percent.
“The Natural Resources Development Account was established to develop alternative mineral resources. The total revenue received from 2012 to 2016 was N486.26Bn.
“Out of this amount, the statutory allocation was N374.15Bn from both mineral and non-mineral revenue.
“A review of the disbursement showed that N543.63Bn was released for various projects in the period, meaning disbursement outstripped inflows by 11 per cent.”
“Contrary to the purpose of the fund, it served as a borrowing fund for the Federal Government to meet its obligations in areas such as budget deficits, national security, Independent National Electoral Commission, Nigeria Armed Forces, among others.”
NEITI also revealed that the revenue paid into the Ecological Fund was utilised for other purposes not specified for.
“The utilisation of the fund does not match the purpose for which the fund was established.
“For instance, for the loan of N93,768,951,164 released to the Federal Government for funding of budget deficits and advance to states and Local Governments to meet shortfalls in their revenue.”
The report stated that statutory allocation in the Ecological Fund between 2012 and 2016 was N276.5Bn, while receipt from excess crude oil was N54Bn.