NNPC: Nigeria’s State-owned Oil Company Didn’t Remit $9.435bn Crude Oil Proceeds in 2015, Senate Says

The Nigerian National Petroleum Corporation (NNPC) failed to remit N3.878 trillion, some $9.435 billion revenue from domestic crude oil sales to the Federation Account, the country’s senate has said.

The upper chamber on Wednesday said the under remittance was for the period of January to December, 2015.

The senate accordingly, called on the Corporation to desist from further deduction at source as it contravenes the country’s laws.

It also mandated the Federation Accounts Allocation Committee (FAAC) or any other approving authority to, as a matter of urgency, approve agreed percentage which should be allocated to NNPC monthly as operational cost to ensure that their operations are not adversely affected.

These formed part of the 59 recommendations adopted by the Senate and contained in the report of the Committee on Public Accounts on the Annual report of the Auditor-General for the Federation on the Accounts of the Federation for the years ended 31st December, 2015.

A statement by media aide to senate president, Ezrel Tabiowo stated that “the Senate in one of its adopted recommendations to the Executive arm of government noted that the outstanding collection from Solid Minerals (N12,137,140,361.58) not remitted to the Federation Account, but kept in an account maintained by the Central Bank of Nigeria contravenes the provisions of Section 162(1) of the 1999 Constitution as amended”.

“The chamber, therefore, charged the Federation Accounts Allocation Committee (FAAC) to fix a percentage to be allocated to Mining and Cadastral Office as cost of collection as is currently applicable to NCS (7 percent), DPR (4 percent) and FIRS (4 percent) of non-oil revenue.”

The Senate also directed the Nigerian Posts Authority to refund the sum of $37.627 million to the federal government coffers due to lack of diligence in the review of NPA’s charges on a contract of Towage services.

It also mandated the Economic and Financial Crimes Commission to subject the Accounting Officer to investigation in accordance with the rules of Financial Regulations.

The statement read, “The upper chamber also demanded that the Director-General who authorized the disbursement of contingency provision on the contract for the rehabilitation of Lagos Habour moles to the tune of N417,099,309.06 without Federal Executive Council approval to be reported to President Muhammadu Buhari in accordance with Rule 3103 of the Financial Regulations.

“On other funds diverted by the NPA, the Senate demanded a refund of various sums in local and foreign currencies, consisting of N1,075,266,599.06, $2,301,329.54 (USD), and €196,257.42 (Euros) meant for the Presidential Implementation Committee on Marine Safety and Security (PICOMSS) to the account of the National Security Adviser to the o President, contrary to a directive approved by the Federal Executive Council on February 21, 2007.

“It added that the non-remittance of another N67,508,041,250.00 for 2013 and 2014 into the Consolidated Revenue Fund (CRF), being 25 percent of its Internally Generated Revenue (IGR) contravened the Fiscal Responsibility Act 2007.

“It further noted that the failure to remit capitalized interest to the Consolidated Revenue Fund totaling N99,712,464.24 between 2013 and 2014 contravened Rule 236 of the Financial Regulations.”

By Abel Ejikeme

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