NNPC sole signatory to foreign crude accounts – CBN
In a statement issued yesterday, the apex bank’s Director, Corporate Communications Department of CBN Ugo A. Okoroafor also said that the NNPC is the sole signatory to the accounts. The Senate has said that such accounts were contrary to the provision of the constitution which stipulates that all revenue that accrues to the federal […]
In a statement issued yesterday, the apex bank’s Director, Corporate Communications Department of CBN Ugo A. Okoroafor also said that the NNPC is the sole signatory to the accounts.
The Senate has said that such accounts were contrary to the provision of the constitution which stipulates that all revenue that accrues to the federal government should be lodged into the federal account.
Officials of the NNPC and CBN have been avoiding any direct involvement in the accounts.
The Minister of Finance Dr. Ngozi Okonjo-Iweala had said that though she is aware of the account she did not know how it operates. The Accountant General of the Federation Jonah Otunla said he also did not know the mode of operations of the accounts.
The CBN statement reads in part: “That the CBN/NNPC Crude Oil & Gas Account was opened on 16th May, 2002, on the express instruction of the Accountant-General of the Federation (OAGF) vide a mandate ref: No; CS/5385/S.23/94/DDF, dated 15th May, 2002.
“That the CBN/NNPC Gas Account was opened on 3rd February, 2009, following a similar instruction from the Account-General of the Federation, vide mandate ref. No.; FD/5385/S.71/1/178/DF, dated 28th January, 2009.”
The statement also said that in operating the said Accounts, the NNPC on monthly basis issues instructions to the CBN on how much should be paid as Joint Venture Cash Call (JVC) and how much should be monetised and transferred to the Federation Account for distribution to the three tiers of government.
A minimum balance of $10m is always left in the revenue account, the statement said.
It also said that on the CBN/NNPC Gas Account, the NNPC issues monthly mandates to enable the CBN monetise and transfer the balance in the account to the Federation Account, leaving a minimum balance of $5 million.
“The CBN does not and cannot open any account for Government and its agencies, unless and until clear and specific instructions, approvals or mandates are issued by the appropriate authorities,” it said.
The statement further read: “…the role of the CBN, as banker to Government and MDAs, is limited to the following:
“Ensuring that lodgments/deposits into the accounts are consistent with their requisite mandates; providing customers with the statements of accounts. In the case of the accounts in question, NNPC and OAGF are provided the statements of account on a weekly basis;
“Ensuring that accounts are reconciled regularly. In the case of the said accounts, this is done with both JP Morgan Chase and NNPC while the OAGF is availed with monthly reconciliation reports on the accounts.
“Above all, it is important to reiterate for the purposes of clarity, that: Mandates to open the accounts were duly authorised by OAGF; NNPC remains the sole signatory to the accounts; NNPC issues and authorises the mandates for movement of funds out of the accounts and
“CBN acts only in accordance with mandates issues by NNPC on these accounts. The CBN wishes to reiterate that in light of these verifiable facts presented above, there was no truth in the allegation insinuating that the CBN is maintaining secret foreign accounts.”