AuGF Accuses NNPC, CBN Of Non-Remittance Of N3.235trn

The Auditor General of the Federation has queried the Nigerian National Petroleum Corporation (NNPC) and the Central Bank of Nigeria (CBN) for not remitting about N3.235trillion from the sale of domestic crude to the Federations Account in 2014.
The Auditor General said in one of the numerous audit queries pending against the NNPC before the House of Representatives Committee on Public Accounts that the corporation has also failed to respond to similar issue raised in 2012.
The new query, is coming less than two weeks after the Auditor General’s Office also submitted a similar query to the committee, accusing the NNPC of illegal withdrawals of $20.301billion from the Nigerian Liquefied Natural Gas (NLNG) dividends account.
Following the development, Chairman of the House Committee on Public Accounts has asked the Group Managing Director of the NNPC, Mele Kyari, and the Governor of the Central Bank of Nigeria (CBN), Godwin Emiefele, to appear before the House to offer explanation on the issue.
The audit query, from the AuGF states that from the “examination of NNPC mandates to CBN on Domestic Crude Oil Sales and Reconciliation Statement of Technical Committee of Federation Account Allocation Committee (FAAC) meeting held in January, 2015, a total sum of N3,234,577,666,791.35 was not remitted to the Federation Account by NNPC within the period under review.”
It said further that the “cost estimated for crude and product losses was N55,964,682,158.99 which is about 50 per cent of pipeline management cost of N110,402,541,010.88. Names of contractors, location and amount paid to each for the pipeline maintenance were not sighted for audit verification.
“Over 31 per cent (N826,506,271,231.26 divided by N2,636,390,514,777.18 multiply by 100%) of the realized crude sales for the year were earmarked as other expenses apart from direct cost of productions stated in NNPC reports for the year 2014. The breakdown of other expenses was not provided for audit.
“From the above analysis, it means that the Federation Account is losing 31 per cent (N826, 506,271,231.26) being additional estimated cost from the total amount that should have accrue to Federation Account.
“From the total revenue of N3,234,577,666,791.35 as at 14th January, 2015, payable to the Federation Account by NNPC during the year, the corporation deducted the sum of N826,506,271,231.26) i.e. N660,139,048,061.39, N55,964,682,158.99 and N110,402,541,010.88 for subsidy estimate, crude and product losses and pipeline management cost, respectively at source resulting to net amount withheld figure of N2,408,041,395,560.33 shown in the table to the Federation Account.”
The AuGF said all the deductions at source by NNPC were not approved by FAAC.
The Auditor General said the Accountant General of the Federation should ask the NNPC Group Managing Director to explain the flagrant attitude of withholding domestic crude oil sales revenue by NNPC which should be refunded immediately, adding that “there was no positive response on similar issue raised in 2012.”
Reviewing the report of the Accountant General of the Federation, Chairman of the committee, Hon. Wole Oke and members of the Public Accounts Committee insisted that the NNPC and CBN should appear to defend the report against them.