The Stabilisation Fund Account which is meant to save funds for the future generation has been depleted by the Federal Government with periodic withdrawals made of over N114 billion in eight months, documents available to Daily Trust show.
President Goodluck Jonathan's
administration made withdrawals in different installments between September 2010 and May 2011 for various expenditure, including loans to the police and funding of committee
activities, according to the documents.
The revenue sharing laws provide that 0.5 percent of funds accruing to the Federation Account should be remitted to the stabilization account. The account had balances of about N120 billion in August 2010 but was depleted to N37 billion by October 14. Funds were withdrawn for activities of the Federation Account Allocation Committee (FAAC), the National Council on Finance and Economic Development (NACOFED) and the Consolidated Revenue Fund Charges (CFR), consumer car finance scheme, police peace keeping mission in Haiti, INEC, among others.
Documents reveal that the Federal Government withdrew over N75 billion in September 2010 alone. On September 1 and 15, the government withdrew N40.5 billion and N35.5 billion which was purportedly “released to CFR as loan to fund the Independent National Electoral Commission (INEC) for 2010 General Election.” Another N11.3 billion was withdrawn on October 13 and “released” to INEC as loan for the same election.
The stabilization account rose to about N36 billion between January to May 2011 only to be depleted again to N11 billion. Also, about N400 million was withdrawn as funding for the activities of FAAC and NACOFED between January and May 2011.
Also, N150 million was withdrawn through five memos on the same day. Another withdrawal was made on January 26, 2011 of N255 million as “funding for NACOFED & FAAC Activities for 2011.”