House of Representatives to Launch Investigation into Alleged Misuse of Natural Resources Fund
The House of Representatives has taken a significant step in addressing the alleged mismanagement and diversion of billions from the National Resources Development Fund, which was established to advance the solid minerals sector from 2002 to 2023.
At a plenary session on Thursday, December 21, 2023, members of the House passed a resolution to investigate the utilisation of financial interventions in the Nigerian solid mineral sector, totalling trillions of naira. This decision was prompted by reports of financial irregularities and potential misuse of funds over the past two decades.
The National Resources Development Fund was created by the federal government in 2002 with the objective of diversifying the economy, reducing dependence on the petroleum sector, and promoting the development of solid minerals. However, concerns regarding the mismanagement of funds and diversion of deposits have plagued the fund since its establishment.
According to the lead sponsor of the motion, Rep. Awaji-Inombek D. Abiante (PDP, Rivers), financial records from 2007 to 2011 revealed misappropriation of N365 billion in fund allocations. In addition, the Nigeria Extractive Industries Transparency Initiative (NEITI) published an audit report in 2019, highlighting further misappropriation within the fund.
The misuse of a 30 million dollars intervention fund in 2016, as well as the allocation of significant amounts of money from the fund for various projects over the years, raised questions about the transparency and accountability of the fund. Rep. Abiante emphasised the need to ascertain the current credit balance of the fund, the proportion of interventions from the fund to the solid minerals sector, and the status of fund utilisation.
In response to these revelations, the House directed its committee on solid minerals development to conduct a comprehensive investigation into the utilisation of the natural resources fund over the years and report back within four weeks. This action underscores the commitment of the House to uphold financial integrity and transparency in the management of public funds.
As the investigation unfolds, the Nigerian public anticipates the findings and hopes for a comprehensive report that sheds light on the intricate web of financial transactions and resource allocation within the solid minerals sector. The outcome of this probe will undoubtedly have far-reaching implications for the management of funds in the natural resources development sector and the broader economy.
It is essential that accountability and good governance prevail in the management of public funds, particularly in critical sectors such as solid minerals development. The success of the investigation initiated by the House of Representatives will signal a renewed commitment to financial transparency and responsibility, setting a precedent for the effective management of resources in Nigeria’s natural resources sector.
