How NPA Squandered N453.6 bn, Senate Told

Soji-Eze Fagbemi, Abuja - 11.10.2008

The Nigerian Port Authority (NPA) on Friday explained before the Senate Ad Hoc Committee on Transportation on Friday how it squandered a whooping sum of N453. 589 billion from its Internally Generated Revenue (IGR) between 1999 and 2008.

Managing Director of NPA, Abdulsalam Mohammed further stunned members of the committee when he admitted that NPA remitted only N11 billion to the Federation’s Account from about N548. 336 billion generated as IGR within the period.

But, the NPA Managing Director failed to explain how the billions of naira was spent without the approval of the National Assembly or relevant authorities.

Mr. Abdulsalam Mohammed was testifying before the Senate Committee probing the utilisation of funds and implementation of policies in the Transport sector at the National Assembly complex.

He explained that the remittance of the meagre N11 billion which represented two per cent of the total revenue earned in the period under review to the Federation Account, was because the agency was not a profit making organisation.

He said: “NPA is not established as a revenue collecting agency for the federal government. It is only a service provider. It does not collect anything as taxes or levies.”

Justifying the extra- budgetary spending of N9. 450 billion, he cited Section 80 of the 1999 Constitution, which provides cover for only government agencies in the first line charge.

However, the Committee disagreed with his explanation and the Committee Chairman, Senator Heineken Lopkobiri accused him of misapplying the constitutional provision to suit his purpose in a bid to cover up the condemnable act.