NNPC fails to remit N4tr in 5yrs — Senate
The Senate Public Accounts Committee has queried the Nigerian National Petroleum Corporation (NNPC) over the non-remittance of N4 trillion revenue generated in five years into the Federation Account. The committee, relying on a 2016 report of the Auditor-General for the Federation, said the money was generated between 2010 and 2015. Oil price hits $71.28 per […]
Senate plenary
The Senate Public Accounts Committee has queried the Nigerian National Petroleum Corporation (NNPC) over the non-remittance of N4 trillion revenue generated in five years into the Federation Account.
The committee, relying on a 2016 report of the Auditor-General for the Federation, said the money was generated between 2010 and 2015.
The Senate committee is probing the spending of federal government’s agencies.
“It was observed from the examination of NNPC report to the Technical Sub-Committee of Federation Account Allocation Committee meeting held in December 2016 that a cumulative total of N4 trillion was unremitted to the Federation Account by NNPC as at 31st December 2016,” the report said.
But the corporation, in response as indicated in the report, claimed that the unremitted N4 trillion was arrived at without taking cognizance of the subsidy and pipeline repairs and management associated with domestic crude oil transactions.
It said the N4tr was spent on petroleum subsidy from 2010 to 2015, including N966 billion on pipeline repairs.
NNPC said, “Subsidy approved and certified by PPPRA from 2010-2015 stood at N4 trillion. Also in 2016, OMS under-recovery stood at N28.6 billion, which brings the total unrecognized subsidy/PMS under-recovery to N4 trillion.
“Aside from the above, pipeline repairs and products losses so incurred stood at N966 billion for the same period.”
The representatives of NNPC are expected to appear before the Senate Committee, chaired by Senator Matthew Urhoghide (PDP, Edo) this week to give clarification on the issue.
The auditor-general, in the report, also queried the Ministry of Solid Minerals over non-remittance of N2bn revenue.
“The permanent secretary of the Federal Ministry of Mines and Steel has been requested to explain why the ministry failed to pay the revenues collected into the Federation Account as required by the constitution,” said the report.
The Senate committee, however, said it would summon the officials of the ministry to explain why it failed to remit the N2bn into the federation account.