All eyes on Reps as they probe unrepatriated export proceeds since 1996

…Lawmakers pledge transparency

By Vera Opia

The House of Representatives has commenced what may become  one of the most extensive financial investigations in Nigeria as lawmakers begin a detailed probe into the alleged non-repatriation of about 850 billion dollars in export proceeds recorded between 1996 and 2014.

The investigation is being handled by the Ad Hoc Committee on Pre Shipment Inspection of Exports and Non Repatriation of Crude Oil Proceeds. The committee is chaired by Rep Seyi Sowunmi of the Labour Party. It begins a retreat on Tuesday to review its investigative plan and determine how to examine export transactions covering almost three decades.

Findings

According to early findings presented to the committee, Nigeria exported crude oil, gas, solid minerals, agricultural produce and other commodities valued at about 1.8 trillion dollars within the period under review. Lawmakers said between 40 and 45 percent of these proceeds were not returned to the country’s financial system.

If verified, the amount would represent one of the largest financial leakages in Nigeria’s history. The period cuts across several administrations beginning from the last years of military rule through the Obasanjo, Yar Adua and Jonathan governments.

Under the Pre Shipment Inspection of Exports Act, exporters are required to return earnings from oil within 90 days and those from non oil within 180 days. Legislators said these provisions were repeatedly breached.

Issues

The committee is examining several factors believed to have contributed to the problem. These include possible gaps in oversight, inconsistencies in export reporting, and weaknesses in the monitoring framework.

Areas under scrutiny include the declaration of export volumes, pricing processes, remittance timelines, documentation procedures and compliance with inspection requirements.

Lawmakers said they would rely only on verifiable records and information submitted by relevant agencies and industry opoperators

Figures

One of the major concerns raised by the committee is the lack of alignment in export data provided by key government institutions. According to the committee, figures from the Central Bank of Nigeria relating to foreign exchange inflows do not match export volume data from the Nigerian Upstream Petroleum Regulatory Commission. These also differ from lifting records from the Nigerian National Petroleum Company Limited and trade statistics from the National Bureau of Statistics.

The committee said it would request corresponding export and import information from foreign governments and international buyers in order to reconcile the differences.

Pre Shipment

The Nigerian Export Supervision Scheme was established to strengthen monitoring of export processes and ensure the return of earnings. However, legislators said the structure of the scheme over the years would be reviewed to determine whether it operated effectively.

The examination will cover the appointment of pre shipment inspectors, adherence to selection procedures, and the operational performance of inspection firms appointed at different times.

Economic Impact

Lawmakers argued that unresolved gaps in export repatriation have contributed to foreign exchange shortages, pressure on the naira, rising public debt and capital flight. Analysts say Nigeria’s economic stability over the past two decades would have been stronger if the reported amounts had been returned.

Timeline

Findings indicated the following :1996 to 2000 witnessed increased external diversion due to political transitions.

2000 to 2007 recorded large export inflows which were not fully reconciled.

2007 to 2014 saw a rise in complex crude exchange arrangements.

2010 to 2014 attracted global attention due to unresolved discrepancies.

By 2014, unrepatriated proceeds were estimated by the committee at 850 billion dollars. Records for the period after 2015 are still being reviewed.

Committee

Rep Sowunmi said the investigation would be guided strictly by facts.

He said, “This committee will rely on documents and verifiable data. We are committed to a transparent exercise that will help the country understand what happened over the years.”

The committee intends to reconcile all export volumes from 1996 to date, match Nigeria’s records with foreign import data, conduct forensic reviews of foreign exchange inflows and examine the operations of the export supervision scheme since inception. Agencies and institutions involved in certification and documentation will be invited for questioning.

A confidential information channel will be established to allow individuals with useful knowledge to provide details to the committee.

Institutional Readiness

Lawmakers said the investigation is an opportunity for the country to address long standing institutional challenges. Rep Sowunmi said Nigeria must ensure that earnings from its exports are returned promptly and completely. Analysts said the progress of the probe will determine whether it leads to meaningful reforms or becomes another unresolved inquiry.

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