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Reps panel condemns NNPC’s deductions of over N4tr in 2015

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House of Representatives, yesterday, condemned the Nigerian National Petroleum Corporation (NNPC) over the spending of oil revenues amounting to over N4 trillion in 2015.

Its Committee on Public Accounts headed by Hon. Wole Oke, argued that the expenditure was in breach of laid down rules and regulations.

Members of the committee who quizzed the NNPC Executive Director, Finance, Umar Ajiya, based on the audit query from the Office of the Auditor General of the Federation (OAGF) frowned on NNPC’s decision to unilaterally deduct over N864 billion from N6.1 trillion oil revenues at source in 2015.

Oke (Osun: PDP) who acknowledged that the money was appropriated in the 2015 budget for the NNPC to offset its joint venture cash call obligations, insisted that the funds should have been paid to the NNPC after paying into the Federation’s Consolidated Revenue Account.

The lawmakers also faulted NNPC’s decision not to remit over N3.878 trillion into the Federation Account as at December 31, 2015, insisting that it was in breach of laid down rules and regulations.

Oke, who directed NNPC’s management to submit a comprehensive report on infractions committed over collection of miscellaneous revenues within the period under review, expressed displeasure at the corporation’s penchant for deducting oil revenues at source under the pretext of offsetting operational expenses.

He hinted that the House would explore a legislation to avert a repeat of the trend and insisted on meeting NNPC subsidiaries over alleged infractions on their audited accounts.

The subsidiaries are the Nigerian Petroleum Development Company Limited, Kaduna Refining and Petrochemical Company, Petroleum Products Marketing Company Limited, Duke Oil Company Inc., West Africa Gas Limited, Nidas Marine Limited, Hyson (Nigeria) Limited and Nigerian Gas Company (NGC), among others.

According to the committee, heads of the 17 subsidiaries, who were invited to the public hearing, must honour its invitation.

Ajiya, who stood in for the Group Managing Director of NNPC, Mele Kyari, submitted the corporation’s audited financial statements from 2015 to 2019 in line with the committee’s directive.

He insisted that the deduction of N864 billion was approved in the 2015 budget as first line charge against oil revenue provided for in agreement with JVC partners.

He, however, added that the KPMG at the instance of the Nigerian Governors Forum with a Supreme Court verdict, absolved the NNPC of blame after reviewing the N3.878 trillion expenditure.


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NNPCUmar Ajiya
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