House probes NNPC’s failure to remit $13b

State-run oil firm, the Nigeria National Petroleum Corporation (NNPC) will be investigated for allegedly failing to remit $13billion it generated from the sale of crude oil to the Federal Government between January and August this year, the House of Representatives has said.

The House has also mandated its Committees on Petroleum Resources (Upstream and Downstream), National Planning and Finance, to summon the relevant Government Ministries and Agencies (MDAs) over dwindling oil revenues as a result of the surge in shale gas production through fracturing or fracking.

The Committees were given four weeks.

Of the $20billion it generated within the period under investigation, the NNPC allegedly remitted only $7billion, a trend, Chairman of Public Account Committee (PAC), Solomon Adeola said was habitual of the oil firm that has been reporting shortfalls in its remittances to the Federal Government since 2007.

The lawmakers resolved yesterday to raise an ad hoc Committee to conduct the investigation because two key Standing Committees of the House were found to have worked at cross purposes in their investigation of the oil firm.

The ad-hoc Committee’s investigation was to ascertain the volume and value of crude oil sales and remittances into the Federation Account from January to date and report back within four weeks.

Haruna Manu (PDP, Taraba) who sponsored the motion said the motion was necessitated by information credited to the NNPC on the status and remittances to the Federation Account and claim that the total crude oil sales from January to August, 2013 was $20billion, whereas the NNPC remitted only $7 billion to the Federation Account.

“A shortfall of $13billion is unaccounted for in the period of January to August 2013. From September to date, no proper accounts have been rendered by the NNPC or records kept to show the actual amount and volume of crude oil sales by the NNPC,” he said.

Lawmakers that spoke in support of the motion were unanimous in their submission that there have been issues of accountability and arbitrary management of oil revenue by the NNPC.

They said there was need to compel the corporation to render accounts of how much it derived from crude oil sales with the period and the actual amount it paid into the Federation Account.

The post House probes NNPC’s failure to remit $13b appeared first on The Nation.

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