A Review of the Nigerian Energy Industry

NNPC’s subsidiaries fail to remit $16bn to Federation account – House of Reps

Oscarline Onwuemenyi

12 March 2013, Sweetcrude, Abuja – The House of Representatives has ordered the Group Managing Director of the Nigerian National Petroleum Corporation, NNPC, to appear before it next week to explain why four subsidiaries of the Corporation have failed to remit about $16 billion into Consolidated Revenue Account.

Chairman, House Committee on Finance, Abdulmumin Jubrin, who
gave the hint on Monday in Abuja, further alleged that NNPC owes N142.7 billion out of the sum of N6 trillion realised as Internally Generated Revenue (IGR) by the Corporation between 2009 and 2012.

Jubrin said, “Our biggest challenge has been the NNPC, but as a Committee, we have resolved that whatever we have to do within the confines of the law, NNPC must be made to pay the money.

“We have said it before that NNPC has never remitted anything under her IGR to the CRF. In 2009, the corporation generated N2.048 trillion as its internally generated revenue.

“It made N2.155 trillion in 2010. While N1.9 trillion was realized in
2011, by July of 2012, the corporation made N259 billion as its internally generated revenue.

“Between 2009 and 2012, the corporation remitted nothing out of the N6,132,347,524,154 they generated to the CRF as demanded by law.”

According to him, the four subsidiaries of NNPC which have their figures denominated in dollars, realised “total profit for the period
under review is $20 billion and are supposed to remit $16 billion or
80 percent of their operating surplus.

He further noted that, an off-shore subsidiary company, Duke Oil Service, UK made a profit of £107,545 but failed to remit the mandatory sum of £86,036 to government’s coffer.

Jibrin alleged that the oil corporation was initially hostile to a technical committee set up by the House to examine its financial
records, adding that the House Committee resolved to set up a technical group to examine the books of the corporation and its 16 subsidiaries.

He noted that, “On the first day, our members were shut out of the complex and refused access to the records up till this moment but we
persisted and determined but eventually we were able to scrutinize the books through some other means where we found out that between them all, a profit of N98,360,658 was made.”

While expressing concern over the non-remittance of the fund into
Consolidated Revenue Fund (CRF) as provided by the Fiscal Responsibility Act 2007, the committee alleged that the corporation has not shown any intention of paying the money.

To this extent, Jubrin directed NNPC’s Group managing Director, Andrew Yakubu to appear before the committee on Tuesday, 19th March 2013 or face the wrath of the law.

The committee also summoned the Chief Executive of the Nigerian Liquified Natural Gas Company (NLNG) and 16 subsidiaries of NNPC to appear before it, in connection with their finances.

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