NNPC failed to remit $12.9 billion – Senate - Flatimes

Friday, 3 June 2016

NNPC failed to remit $12.9 billion – Senate

Senate, yesterday, alleged that the Nigerian National Petroleum Corporation (NNPC) failed to remit $12.9 billion paid by Nigerian Liquified Natural Gas (NLNG) to it between 2005-2013 to the Federation Account.

The revelation was made at plenary when Senate considered a motion on the urgent need to look into the Nigeria Extractive Industries Transparency Initiative (NEITI) 2013 oil, gas and solid minerals audit report.

Senator Tijjani Yahaya Kaura, who moved the motion, said Nigeria lost about $5.966 billion and N20.4 billion in the sector from the operation of offshore processing agreements by state oil firms, NNPC, crude oil swap and theft.

He said from the audit report, Nigeria made about N58.07 billion from hydrocarbons industry in 2013 and added that N33.86 billion was realised from solid minerals sector in the same year.
He expressed worry that $3.8 billion and N358.3 billion stand as outstanding revenues from the NNPC and its subsidiaries in 2013.

He also claimed that NNPC introduced different pricing modules which aided major oil and gas companies to underpay royalties and profit rates into the federal account. He said it was time Senate checked in-house conspiracy to save Nigeria from financial pauntry.

Reacting to some claims made in the report, Senate President Bukola Saraki, said the chamber will soon look into it.

He said claims made in the audit report were too enormous to ignore.

Senate is expected to invite NEITI executive secretary to explain in details, contents of the report.

Meanwhile, the House of Representatives Committee on Privatisation has directed the Minister of State for Petroleum Resources and Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Ibe Kachikwu to stop making public pronouncements on the planned privatisation of three refineries owned by the Federal Government.

Chairman of the Committee, Ahmed Yerima (APC-Bauchi), said it was illegal for the minister to continue to speak on the policy after the Committee had directed NNPC to halt whatever plans it had with regard to the refineries.

Group Executive Director of the NNPC in charge of Refineries, Anibor Kragha, who represented the minister assured that Kachikwu will honour the invitation next week.

Speaking in Port Harcourt on May 27, Kachikwu explained that President Muhammadu Buhari has not given him the mandate to privatise the refineries in the country.

He said the president only gave approval for investors to invest in the refineries, in order to raise needed funds to improve their operations.

Sun News

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