NNPC in another corruption scandal

The Nigerian National Petroleum Corporation (NNPC)  is in the middle of another corruption scandal following the revelations that the body is yet to remit about N1.78 trillion accruing from crude oil sales into the government’s coffers.

We gathered that from January 2016 to September 2017, NNPC has about N460. 649bilion yet to be remitted into the Federation Account.

Following the revelation, some States of the federation have demanded an update from the NNPC on about $172,913,617.30million outstanding payments from the NLNG Feedstock sales, Chevron Cheetah Project, Royalty Oil Sales Value lifting by TEPNGA MCA, RDP Price Review and others.

But, the Minister of Finance, Mrs. Kemi Adeosun, who inherited the challenge of reconciliation between the states and NNPC at the FAAC, is said to be addressing the matter.

Meanwhile, the NNPC is insisting that FAAC owes it about N797billion, being cost of product and pipeline losses. It has asked the FAAC to give it a three-month grace to compile the lost data from its area offices as demanded by states and to complete a forensic audit of same.

Although the three-month period will lapse by the end of November, the states are insisting that there will be no FAAC meeting until the non-remittance of the N1.78trillion is resolved.

Investigation revealed that the states had raised concerns over the NNPC’s outstanding N1.78trillion at the FAAC Post-mortem Sub-Committee meeting on October 23 but the Federal Government did not know that it would degenerate to a likely boycott of the FAAC meeting last Thursday.

According to a document signed the Chairman, FAAC Post-mortem Sub-Committee, Dr. Casimir I. Anyanwu, it raised eight issues for the NNPC to clarify. They include the non-payment of N1.78trillion into the Federation Account.

About N1.32trillion revenue from 2010 to 2015 is yet to be remitted by NNPC; about N460.649 has been unpaid between January 2016 and September 2017 bringing the total to N1.78trillion.

The document said: “The Gross Domestic Crude Revenues between 2010 and 2015 amounted to N5, 351,114, 508, 433.79(trillion); the PPPRA’s certified NNPC subsidy from 2010 to 2015 was N4, 026, 369, 698, 361.62(trillion) and the Net outstanding revenues due to Federation is N1,324,744, 810,072.12(trillion).

The NNPC is said to be holding on to some outstanding payments because FAAC is yet to refund the N797billion it incurred as product and pipeline losses. But this claim has been faulted by states because there is no proof from the oil giant.

All the stakeholders are said to be demanding a forensic audit of NNPC’s losses and how these led to the N797billion bill.

Nigeria witness

First Bank

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