The House of Representatives on Wednesday began investigation into the alleged non-remittance of over N6 trillion and $5.5 billion yearly revenue into the Federation Account by Nigerian Petroleum Development Company (NPDC).
This is coming just as NPDC Managing Director, Yusuf Matachi told the probe panel that the company was owing $1.7 billion noting that $10 million was been paid back on monthly basis, based on an agreement signed with Nigerian National Petroleum Corporation (NNPC) and Department of Petroleum Resources (DPR).
He told the lawmakers that the company is as an arm of NNPC in the upstream sub-sector is rated fourth oil producing company in Nigeria and is the only indigenous producer and supplier of gas.
He said NPDC’s profits is to be deducted from first lime charge by DPR in a bid to stem continuous debt accumulation as the company is owing $1.7 billion.
However, based on a document in the possession of the committee, DPR granted NPDC a payment of $50 million monthly in January 2017 to defray outstanding debt but the plan was not adhered to.
“in October 2017, NPDC applied to pay $10 million monthly to clear the outstanding debt and it was approved by DPR. However no payment has been made.”
DPR managing director, represented by Folasade Odunuga, said a tripartite agreement on the $1.7 billion indebtedness, was truly agreed to, but said no payment has been received as at yesterday.
DPR’ Head of Upstream, Sanya Bajomo, profiled NPDC revealing that is presently operates 14 oil blocs, four not yet operational while five are yet to be deployed.
The company has 3.7 billion barrels of oil and 16 trillion cubic feet of gas of undeveloped assets and produces 200,000 barrels of crude per day.
He added that the company through its 5 year plan, the Organisation ” is to drill 17 explorative wells, increase reserve and 196 development wells and 77 work-overs ” he said.
Speaker Yakubu Dogara while declaring investigate public hearing open, supported the Federal Government’s diversification policy into agriculture and the manufacturing sectors, but noted that oil still remains the mainstay of Nigeria’s economy.
Dogara said , assured that “any proven infractions to structures and processing in the oil and gas sector would tantamount to sabotaging the lifeline of the nation and will therefore be viewed with great concern.”
The Speaker, who was represented by Chukwuma Onyema, Deputy Minority Leader said Ministries, Departments and Agencies (MDAs) should be accountable to Nigerians.
House Committee of Petroleum (Upstream) Chairman, Hon. Victor Nwokolo, said the hearing was in alignment with the provisions of the 1999 Constitution, and that the hearing was purely to address lapses leading to revenue losses mainly.
The first aspect of the Committee’s mandate, he said, was to “enquire into the alleged infraction in the operations and activities of NPDC. The second issue is to examine the persisting lack of capacity, leading to revenue losses to the Federal Republic of Nigeria.”
According to him, Nigeria “cannot afford losses if revenue I’m any of our investments, whatever there are wastages and/or leakages, as representatives of the people, it is our duty to put an end to it.”