Following the presidential directive, the Minister of State for Finance, Mr. Remi Babalola has mandated the Auditor –General of the Federation to review the Petroleum Subsidy Account to ensure that the government’s funds are properly utilised.

Besides, the AGF is also assigned audit all inflows into the Federation Account to authenticate completeness and the integrity of balances. Babalola made this disclosure in Abuja yesterday, adding that the assignment is to curb "the deteriorating situation"

The minister recalled that he had revealed at the last Federation Accounts Allocation Committee meeting that "the proposed policy of the Central Bank of Nigeria (CBN) to distribute part of the statutory allocation in foreign currency- dollars.

"At that time, I did mention that my ministry will engage the CBN to work out modalities for the effective implementation of this proposed policy, ensure that final directives are received from the Presidency," he said.

President and CBN Governor to inform them the need to engage the states and local governments to secure the understanding and acceptance of the policy, and the need to build capacity at all levels in foreign exchange management.

"I should add that the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) wrote the president and my ministry, expressing reservations about the proposed policy on several grounds and advising the president to stop its implementation.

To this end, he dropped the hint that the President has ordered that plan to disburse Federation Account funds to Federal, State and local governments in foreign currency be stopped immediately, which made him laid the case to rest.