The House of Representatives has summoned the Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari and Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele over non-remittance of N3.235 trillion ($19.253 billion) revenue accrued from sales of domestic crude oil in 2014.
Chairman, House Committee on Public Accounts, Hon. Wole Oke issued the directive on Sunday following audit queries issued by the Office of the Auditor General of the Federation (oAuGF) for the period under review.
Recall that the NNPC GMD had a fortnight ago failed to honour the invitation sent to him penultimate week, on the illegal withdrawals of $20.301 billion from the Nigerian Liquefied Natural Gas (NLNG) Dividends account.
According to the details of the query, oAuGF observed that from the “examination of NNPC mandates to CBN on Domestic Crude Oil Sales and Reconciliation Statement of Technical Committee of Federation Account Allocation Committee (FAAC) meeting held in January, 2014 that a total sum of N3,234,577,666,791.35 was not remitted to the Federation Account by NNPC within the period under review.”
The oAuGF findings further showed 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 thereby resulting to net amount withheld figure of N2,408,041,395,560.33 shown in the above table to the Federation Account. All these deductions at source by NNPC were not approved by FAAC,” the audit query read in part.