The House of Representatives has raised questions for the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) regarding the non-remittance of a significant sum of $278,184,937.72 stemming from the transfer of OML 24 in 2019.
As per records from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), OML 24 was conveyed to NNPCL/Nigeria Export Processing Council (NEPC) in 2019 for a Signature Bonus of $309,094,374.72, yet only $30,909,437 has been disbursed, leaving an outstanding balance of $278,184,937.72 owed to the government by NNPC/NEPL.
NNPCL’s GCEO, Mele Kyari, provided insights into the challenges facing Nigeria’s oil and gas sector, emphasizing its pivotal role in national revenue generation. He underscored the necessity of prioritizing the industry, highlighting its interconnectedness with other sectors such as taxation.
Kyari outlined the industry’s unique challenges, including high production costs and security risks, citing instances of illegal refineries and unauthorized oil collection points hindering production and revenue optimization.
Chairman of the House Committee on Finance, Hon. James Faleke, expressed apprehension regarding the impact of escalating crude oil production costs on government revenue, emphasizing the reduction in oil proceeds accruable to the Federation due to asset transfers.
