“The utilization of the fund does not match the purpose for which the
fund was established."
A report by the Nigeria Extractive Industries and Transparency
Initiative, NEITI, has revealed details on how the Nigerian Government
diverted N543.63bn for Natural Resources Development to fund the
Independent National Electoral Commission and budget deficit.
The Punch reports that the report published by the Nigeria Extractive
Industries and Transparency Initiative that the diverted N543.63bn was
also used to fund budget deficits, national security, and Nigeria
Armed Forces, among others.
The report said, “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 disbursement showed that N543.63bn was released for
various projects in the period, meaning disbursement outstripped
inflows by 11 percent.”
“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.
“The utilization 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.”