Alleged $1.05bn illegal withdrawals: Tension As House of Reps orders investigation into NNLG account

Whatsapp News

Following an alleged illegal withdrawal of $1.05 billion from Nigeria Liquefied Natural Gas (NLNG) account by the Nigeria National Petroleum Corporation (NNPC) without its knowledge and appropriation, the House of Representatives has concluded plans to commence an investigation into the matter.

To this effect, Speaker of the House, Femi Gbajabiamila mandated the House Committee on Public Account to conduct a thorough investigation on activities that had taken place on the dividends account and to invite the management of the NNPC as well as that of the NLNG in the process and report back to the house in four weeks.

The decision by the lower chamber is coming on the heels of a unanimous adoption of a motion by the Minority Leader of the House, Ndudi Elumelu, during the plenary session on Tuesday, July 7, 2020.

Zenith Bank
Going down memory lane, Elumelu recalled that the NLNG was incorporated as a limited liability company in 1989 with the aim of producing liquefied natural gas and natural gas liquids for export purposes which began in 1999.

He pointed out that the NLNG is jointly owned by the Federal Government, represented by the NNPC with a shareholding of 49% and Shell Gas with 25.6%, Total LNG Nigeria Ltd with 15% and ENI International with 10.4%.

The Minority leader said, “The dividends from the NLNG are supposed to be paid into the Consolidated Revenue Funds Account of the Federal Government and to be shared among the three tiers of government.’’

Going further in his motion, Elumelu said, “The NNPC who represents the government of Nigeria on the board of the NLNG had unilaterally without the required consultations with states and the mandatory appropriation from the National Assembly illegally tampered with the funds at the NLNG dividends account to the tune of 1.05 billion dollars thereby violating the nation’s appropriation law.

“There was no transparency in this extra-budgetary spending as only the Group Managing Director and the corporation’s Chief Financial Officer had the knowledge of how the 1.05 billion dollars was spent.’’

‘’There are no records showing the audit and recovery of accrued funds from the NLNG by the Office of the Auditor General of the Federation. Hence the need for a thorough investigation of the activities on the NLNG dividends account” he stated.

Source: The New Diplomat