Reps Panel Summons NNPC, CBN Over Alleged Missing N3.2 tr Oil Revenue
Again, the House of Representatives has summoned the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Mele
Kyari, and Governor of Central Bank of Nigeria (CBN), Mr. Godwin Emefiele over alleged non-remittance of N3.235 trillion ($19.253 billion) revenue accrued from sales of domestic crude oil in 2014.
Chairman, House Committee on Public Accounts, Mr. Wole Oke, issued the directive during an investigative hearing on the audit queries issued by the office of the Auditor General of the Federation (AuGF) for the period under review.
The summon came barely 10 days after the NNPC boss refused to honour the invitation sent to him penultimate week, on alleged illegal withdrawals of $20.301 billion from the Nigerian Liquefied Natural Gas (NLNG) dividends account.
According to the details of the query, the AuGF observed that from the “examination of NNPC mandates to CBN on domestic crude oil sales and reconciliation statement of technical committee of Federation Account Allocation Committee (FAAC) meeting held in January, 2014, a total sum of N3,234,577,666,791.35 was not remitted to the federation account by NNPC within the period under review.”
The AuGF also made the following findings: “The cost estimated for crude and product losses was N55,964,682,158.99 which is about 50 per cent of pipeline management cost of N110,402,541,010.88, names of contractors, location and amount paid to each for the pipeline maintenance were not sighted for audit verification.
“Over 31 per cent (N826,506,271,231.26 divided by N2,636,390,514,777.18, multiply by 100 per cent) of the realized crude sales for the year were earmarked as other expenses, apart from direct cost of productions stated in NNPC reports for 2014. The breakdown of other expenses was not provided for audit.
“From the above analysis, it means that the federation account is losing 31 per cent (N826,506,271,231.26) being additional estimated cost from the total amount that should have accrued to the account.
“From the total revenue of N3,234,577,666,791.35 as at 14th January, 2015 payable to the federation account by NNPC during the year, the corporation deducted N826,506,271,231.26 (i.e N660,139,048,061.39, N55,964,682,158.99 and N110,402,541,010.88) for subsidy estimate, crude and product losses and pipeline management cost at source, thereby resulting to net amount withheld figure of N2,408,041,395,560.33.”
“All these deductions at source by NNPC were not approved by FAAC,” the audit query read in part.
While requesting the accountant general of the federation to inform the NNPC to explain the flagrant attitude of withholding revenue, which should be refunded immediately, the AuGF observed that there was no positive response to a similar issue raised in 2012.
To this end, the NNPC group managing director was asked to “provide names of the contractors, location and amount paid to each for the pipeline maintenance for verification.
While reviewing the response of the accountant general, the Reps said the NNPC and CBN should cause appearance in persons, as the accountant general cannot provide sufficient evidence on the audit query of such magnitude.
Follow us on Twitter at @thesignalng
Copyright 2020 SIGNAL. Permission to use portions of this article is granted provided appropriate credits are given to www.signalng.com and other relevant sources.