Crude oil sale: AGF queries NNPC, CBN over missing N3.235trn

Spread the love

The Auditor General of the Federation has queried the Nigeria National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN) for not remitting about N3.235 trillion from the sale of domestic crude to the Federations Account in 2014.

The new query is coming less than two weeks after the Auditor General’s office also submitted a similar query to the Committee accusing the NNPC of illegal withdrawals of $20.301 billion from the Nigerian Liquefied Natural Gas (NLNG) Dividends account.

The Auditor General said in one of the numerous audit queries pending against the NNPC before the House of Representatives Committee on Public Accounts that the corporation has also failed to respond to similar issue raised in 2012.

Following the development, Chairman of the House Committee on Public Account has asked the Group Managing Director of the NNPC, Mele Kyari and the Governor of the Central Bank, Godwin Emiefele to appear before the House to offer explanation on the issue.

It said further that the “cost estimated for crude and product losses was N55,964,682,158.99 which is about 50% 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% (N826,506,271,231.26 divided by N2,636,390,514,777.18 multiply by 100%) of the realized crude sales for the year were earmarked as other expenses apart from direct cost of productions stated in NNPC reports for the year 2014. The breakdown of other expenses was not provided for audit.

“From the above analysis, it means that the Federation Account is losing 31% (N826, 506,271,231.26) being additional estimated cost from the total amount that should have accrue to Federation 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 the sum of 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 respectively at source resulting to net amount withheld figure of N2,408,041,395,560.33 shown in the table to the Federation Account.”

The Auditor General said the Accountant General of the Federation should ask the NNPC Group Managing Director to explain the flagrant attitude of withholding domestic crude oil sales revenue by NNPC which should be refunded immediately, adding that “there was no positive response on similar issue raised in 2012.”

The House committee is also investigating the whooping sum of $510,020,921.79 delayed payment for the crude oil lifted some days later than the due dates required for payments, by Republic of Zambia, Aridor Oil and Gas Ltd, Calson (Bermuda) Ltd, Hyde Energy Ltd, Azenith Energy Resources Ltd and Duke Oil Company.