Senate investigates alleged $4bn non-remittance by NNPC, NPDC

The Senate, on Tuesday, raised the alarm that the Nigeria National Petroleum Corporation (NNPC) and the Nigeria Petroleum Development Company (NPDC), had willfully withheld public revenue to the tune of $3.487 billion.

The chairman, Senate Committee on the Federal Capital Territory(FCT), Senator Dino Melaye, who raised the allegation in a motion on Tuesday, said that NPDC failed to pay funds raised from divested oil wells to the federation account.

He stated in the motion that though, the company lifted crude from divested oil wells, including Oil Mining Lease (OML) 65, 111 and 119 amounting to $1.847 billion, it only paid $100 million to the government account.

He said that while such a practice had been  in operation before the advent of this government, it had continued unabated under the current administration.

The senator said that the act of denying the government its due, is being perpetrated with impunity, adding that between January and August 2016, the NPDC has allegedly lifted crude amounting to $344.442 million without following due process.

He said that  NPDC especially, had since 2013, been lifting crude from divested OML 61,62 and 63 to the tune of over $3.487 billion without remitting the proceeds to the federation account.

He also said that the company has failed to pay royalties and other taxes to the government.

“It is curious that despite the much trumpeted anti-corruption stance of the current administration that this level of corruption could still be nestled and tucked in by highly placed individuals is derisive of the entire anti-corruption fight.

“The Senate observes that the said amount so far withheld illegally can build about 11 world-class teaching hospitals fully equipped to cutting edge machinery of about 200 beds in Nigeria, six health care centres in each of the 774 local government areas of the country and added on the national power grid 4,000 mega watts of electricity.”

While seconding the motion, Senator Mao Ohuanbuwa, said that the NNPC and NPDC, have violated the 1999 Constitution (as amended)  by failing to remit the stated funds into the Consolidated Revenue Fund (CRF).

Senator Adeola Olamilekan, who also contributed to the motion, said that the attitude of the two agencies amounted to  high degree of misappropriation.

He said that by depriving government of almost $4 billion at a time when the government is seeking a $30 billion loan, the agencies must not go unpunished.

The Senate, thereafter, referred the motion to the Joint Committee on Petroleum (Upstream, Downstream) and finance for investigation, while giving the committees a deadline of January 9.

The chamber also mandated the NNPC and the NPDC to immediately remit monies the Federation Account.

The lawmakers, specifically, mandated the Group Managing Director of NNPC, Baru Maikanti, to ensure compliance with the directive with immediate effect.

The Senate also asked  NNPC to immediately forward its yearly estimate for pipeline repairs, operations and maintenance to the National Assembly for appropriation.