Adebayo clarifies issues on transfer of 14bn from 2017 budget of NEPZA

Minister of Trade and Investment Adeniyi Adebayo says that the
Federal Government would be a major share holder in the company
that will be in charge of Special Economic Zone.

Adebayo gave the clarification in Abuja on Monday when he
appeared before the Senate Committee on Appropriation.

The clarification from the minister follows a previous request
for clarification from the Senate Committee on Trade and Investment
on the alleged illegal transfer of about N14 billion from 2017
appropriation budget of the Nigeria Export Processing Zones
Authority (NEPZA).

The committee had noted the fund, which was transferred to
Nigeria Special Economic Zones Company, was in breach of 2017
Appropriation Act.

The committee had sought an explanation on how such fund got
moved from government coffers to a private company without due
process and without provision of goods and services.

The ministry, via the Permanent Secretary, Mr Edet Akpan, had at
the 2020 budget defence before the Committee on Trade and
Investment explained that the said amount was domiciled in an
account with the Central Bank of Nigeria (CBN).

Akpan had said: “The idea of opening an equity company was a
creative idea of the former minister who believed it was more
proper to have a centralised equity company that could managed all
the free trade zones in the country.

“That informed the decision for an equity company to be set up
and all that was done after a wide consultation and approval from
the Federal Executive Council (FEC).

“The then minister also requested from the budget office the sum
of N48 billion to be appropriated for the purpose of that
investment in 2017.

“Unfortunately the amount that was released was about N14
billion and it was 100 per cent controlled by NEPZA and had nothing
to do with the main ministry.

“But when the minister taught of implementing the project and
having got the approval of FEC, NEPZA was asked to transfer the
money to an account that was opened with CBN and that was done.

“But in the course of trying to implement the project, there was
some form of disagreements in terms of who were the subscribers to
the company and that led to the putting on hold the execution of
the project’’.

“The issue is that the previous administration, my predecessor
at the time of setting the company, the process by which he set up
the company created an impression that made some people think it is
a private company.”

He said that the reason for setting up the special company
called Special Economic Zone was to champion government business
activities.

He, however, said that the process of establishing the company
by the previous administration had resulted in some form of
investigation and litigation.

He said that the Economic and Financial Crimes Commission (EFCC)
and the State Security Services (SSS) were investigating the
various processes leading to the establishment of the company.

This, he said had resulted in the ministry putting on hold every
matter on the company until investigation are concluded.

Adebayo said that the amount of money that was previously
appropriated for the company was in the custody CBN.

Chairman of the Committee, Sen. Barau Jibril (APC Kano), thanked
the minister for his explanation on the issue.

He urged the minister to liaise with the president on bringing
up appropriation for consideration of senate after resolving the
matter.

Sen. Rochas Okorocha (APC Imo), urged the committee to consider
appropriating the 14 billion domicile in CBN to sectors such as
tourism and other sectors, noting that it does not make economic
sense for such money to be kept in the bank.

(NAN)

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