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The House of Representatives has reiterated resolve towards strengthening legislative framework on preshipment oil and non-oil products by ensuring export monitoring framework, improve transparency in the crude oil value chain, and safeguard accruing revenues into the Federation.
Chairman, House of Representatives’ Ad-hoc Committee on ‘Investigation of Pre-Shipment Inspection of Exports and the non-remittance of Crude Oil proceeds’, Hon. Seyi Sowunmi gave the assurance in Abuja while addressing Preshipment Agents engaged by Federal Government.
While stressing the need to ascertain whether the systems designed to monitor crude oil exports are functioning as intended and whether Nigeria is receiving the full value of what is taken from its soil and waters, he reiterated the Ad-hoc Committee’s to ensure that all stakeholders involved in the exercise give account of their stewardship.
“These are not small concerns. They go to the heart of fiscal accountability. The decision of the House to establish this Ad-hoc Committee was taken after careful consideration of reports, petitions, financial data, and public concerns suggesting possible inconsistencies in export declarations, weaknesses in the pre-shipment inspection framework, and inconsistencies in the remittance of proceeds accruing to the Federation.
“Our responsibility is clear. Under the Constitution of the Federal Republic of Nigeria, the National Assembly is entrusted with oversight of public revenue and the activities of institutions responsible for managing national resources. This mandate is not ceremonial. It is a solemn duty owed to every Nigerian citizen whose welfare depends on the responsible management of public wealth.
“We are therefore gathered here not merely to ask questions, but to establish facts. Facts about how crude oil exports are measured. Facts about how export shipments are verified in terms of quality, quantity and pricing. Facts about how proceeds are recorded, repatriated, and accounted for,” he noted.
Speaking during the second day of the investigative hearing in Abuja, Hon. Seyi Sowunmi directed management of Nigeria Customs Service (NCS), Nigerian Ports Authority (NPA), Central Bank of Nigeria (CBN) and Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) to submit all requested documents that will aid the exercise.
The directive followed submissions by representatives of the agencies before the Committee which it said was not up to date, hence the Committee will communicate to them on the dates to appear.
Earlier, the agencies informed the Committee on their separate roles regarding Pre-Shipment of oil and non-oil goods and commodities at export terminals.
In her submission, DCG Caroline Diagwan who represented the Comptroller General, Nigeria Customs Service (NCS), Bashir Adeniyi said that, the Service play a role in line with its establishment Act and other extant laws of the country.
She said: “Our role as regards export of food is we get what we call NXP, and then certificate of inspection, as well as export permit. We now make sure that those documents tally with what has been exported at the point of export. So we do examination as well as physicalization of food.
“That is the role we play.We make sure that what is being exported tallies with the documents sent to us by the CBN, that’s the NXP, and then the export permit from NUPRC. We are there at the point of inspection. After inspection, that’s when they do the exportation. Customs are there with other government agencies.
“We don’t collect export duties, actually. And we don’t really know how much money they are paying to the government, because that’s not our purview. So as long as the documents they issue to us clearly with what is there physically, they are good to go.
“The export takes place at export terminals under oil and gas command in Port Harcourt, as well as other commands in Edo Delta. So these controllers of these commands, they send monthly returns to the headquarters on all the activities, which include all exports as well as imports.”
On his part, CBN’s Director, Dr. Musa Nakurji, who represented the CBN Governor, Yemi Cardoso stated that, the CBN acts as the rallying point of the activities of the other agencies through platforms that process the data and information.
He said: “So, regarding the issue of pre-shipment inspection, by the Act of 1992, Central Bank is actually saddled with the responsibility of the administrative side of it. So let me first of all start by making a bit of a correction. If you look at the Pre-Inspection Act, Central Bank does not appoint the pre-inspection agent.
“Then the second thing again, in terms of the form NXP, we don’t send anything manually to Customs.The process is automated and Customs latch on to that to get their report.
“So in Central Bank, we have the trade monetary system. This is happens on that the trade monetary system and the SVP. So from the bank, the commercial bank of the exporter, they open the form NXP.
“And now there is what is being referred to as clean certificate of inspection. So anything that is going out, the pre-inspection agent will have to inspect that in terms of the quantity, the quality and the value. If they do that and they’re satisfied with what they have, they now issue a CCI.”
On his part, NPA General Manager Tariff, Mr. Ibrahim Lukman who represented the Managing Director and Chief Executive Officer, Dr. Abubakar Dantsoho disclosed that NPA appoints agents that are stationed at export terminals and relay all the information to the agency.
He added that, the NPA works hand-in-hand with the other government agencies as provided by law and it has a defined jurisdictional role in what it does at the export terminals.
In his submission before the Committee, NACCIMA Director, Dr. Emmanuel Akeh stated that the organisation is the umbrella body of Chamber of Commerce in the country.
He however informed that, it does not have any role in Crude oil exports saying that it only issues
certificates of origin which is a trade document to non-oil exports to certify their originality and authenticate the products going out of the country.
In his remarks, Hon. Sowunmi said that, the investigation is crucial to the nation as it will help address some the issues making the country to lose the needed revenues through leakages.
He said: “Because part of the problems Mr. President is trying to cure is that we should account for every kobo that accrues to the nation. And that is what this Committee seeks to achieve.”
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