CBN Alerts On Missing N8trn Oil Revenue

Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi has raised alarm over the illegal diversion, or theft of over N8 trillion crude oil sales proceeds.

In a memo to President Goodluck Jonathan on September 25, 2013, the Central Bank governor,   detailed how the Nigeria National Petroleum Corporation, (NNPC), had systematically diverted the huge sum, being sales proceeds between January 2012 and July 2013.

The CBN governor said for all crude oil sales within the period, the NNPC paid only 24 percent proceeds into the federation account, and diverted or stole the remaining 76 percent-totalling N8 trillion.

As the CBN calculated, the NNPC sold at least 594 million barrels of oil within the period, and should have paid N10.3 trillion (USD65.3 billion) into the federation account. But the corporation paid only N2.5 trillion (USD15.5 billion), Mr. Sanusi said, citing documentation from pre-shipment inspectors. The whereabouts of the huge balance is unknown.

The weight of the differential is clearer if evaluated against the fact that the tiny percentage remitted by the NNPC managed to finance the nation in that period, raising the question of how much the total would then have achieved for a country unable to pay its university lecturers who have been on strike for five months.

Put simply, for each barrel of oil sold, say at an average of USD100, the NNPC illegally cornered $74 into an unknown account and gave Nigeria only $26.

Sanusi, according to our source, said he was “constrained” to hint the president after observing the huge shortfalls for years. He accused the NNPC of breaching two key federal laws, and urged the president to act expeditiously by ordering sweeping investigation and prosecution of those found culpable.

President Barack Obama (left) shakes hands with Cuban President, Raul Castro, during the official Memorial Service for former South African President, Nelson Mandela at FNB Stadium in Johannesburg, South Africa, yesterday.