Home News Reps summon NNPC chief over N3.878tr unremitted revenue

Reps summon NNPC chief over N3.878tr unremitted revenue


The House of Representatives Committee on Public Accounts has summoned the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Mele Kyari, to respond to an audit query from the Office of the Auditor-General of the Federation (oAuGF) on the N3.878 trillion under remittance revenue from domestic crude oil sales.

Kyari is also expected to respond to queries on the non-collection of miscellaneous gas receipt for some months in the 2015 financial year, as well as the refund of N450 billion by NNPC to the Federation Account; refund of N1.8 trillion unpaid gas revenue without details.

In addition, he is also expected to provide answers to the lawmakers on “payment through Nigeria Gas Limited Funding Account of $30,963,894.01 (N16,099,887,119.77) as well as misapplication of Joint Venture Cash Calls (JVCC s) for other purpose valued at $292,094,405.82 and N2,474,295,000.

The House Committee, therefore, requested for “full brief on the account and utilisation of fund with retirement details, cash books, mandates with bank statement and payment vouchers for operation on the NGL funding account”.

The NNPC Group Managing Director, who is being expected by the lawmakers on February 11, 2021, is expected to appear alongside those who benefited from the Nigeria Gas Limited Funding Account.

The beneficiaries are Century Energy Service Limited; United Refining Rachmann; Union Petroleum Service; Ocean Bed Trading Limited; Ice Energy & Petroleum; Mangrove Pet. Supplies & Logistic and Unicorp Trading Limited.

The lawmakers are also asking the NNPC chief to provide the approval memo authorising movement and payment of the fund from JVCC JP Morgan Chase Account to Bank of International Settlement.

He is also to furnish the House Committee “the presidential approval memo, authorising NNPC to disburse the JVCCs amounting to $292,094,405.82 and N2,474,295,000 for other purposes with all relevant documents to support the expenditure.

In a two-page letter, Ref. HR/PAC/SCO5/9NASS/FA/2015/1 dated February 1, 2021, Chairman, House Committee on Public Accounts, Hon. Oluwole Oke (PDP, Osun) asked the NNPC Group Managing Director to appear before the Committee with the management of NAPIMS.

Other issues being investigated by the Constitutional committee include: non-availability of Joint Venture Bank Statement and Reconciliation Statement as well as the Bank Statement of the Joint Venture Account.

Others are: non-declaration of projects from NNPC JVs; audited account for 2014 and 2015 financial years; full breakdown of production figures by the JVs (PSC, SC, etc, for proper reconciliation), comprehensive records of transactions relating to the unpaid gas revenue worth $198,919,212.27 (N39,189,084,819.19).

No fewer than 26 companies/Entities that benefitted from the fund are to appear alongside the NNPC Group Managing Director.

The committee letter read in part: “Pursuant to the Committee’s constitutional mandate over matters relating to public finance management, audit and expenditure as provided in sections 80, 85, 88 and 89 of the 1999 Constitution (as amended) and Order XVIII – Rule 6 of the House of Representatives Standing Orders, the Public Accounts Committee has commenced investigative hearing on the Auditor-General’s reports on the Federation Accounts for 2015.

“During a hearing session with the Accountant General Office on Friday, 29th January, 2021, the Committee resolved that you cause appearance to respond to the issues raised”.

In another letter with Ref. HR/PAC/SCO5/9NASS/FS/2016 dated January 2, 2021 addressed to the NNPC Group Managing Director, the committee expressed grave concern over the “poor disclosure of receipts from the Nigerian National Petroleum Corporation,” of the financial statements for the 2016 fiscal year.


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