News Column

Missing Oil Fund - Senate Report Faults Sanusi, Indicts NNPC

May 28, 2014



The Senate Committee on Finance has described as untrue, allegations by the suspended Governor of the Central Bank of Nigeria, Mallam Lamido Sanusi, that $49.8bn was missing from the federation account.

The committee, led by Senator Ahmed Makarfi, which submitted its report on Thursday also said total crude oil liftings from January 2012 to July 2013 was $67bn and not $65bn as Sanusi had alleged.

Sanusi, had written President Goodluck Jonathan, alleging that the NNPC had failed to remit $49.8bn being part of the income it generated from sales of oil.

But the committee stated that all the agencies which made presentations had agreed after reconciliation that $47bn out of the $67bn had been credited to the Federation Account, leaving $20bn to be accounted for.

It however added that the $5.254bn PMS subsidy by the Petroleum Products Pricing and Regulatory Agency, which was part of the $20bn was covered by the Appropriation Acts 2012 and 2013.

It also added that $3.512bn DPK subsidy certified by PPRA for the period January 2012 to July 2013 was not appropriated for by the National Assembly.

It therefore asked the management of the Nigerian National Petroleum Corporation to refund $262m being expenses it could not satisfactorily defend during the just concluded probe of the $49.8bn alleged to be missing from the federation account.

It also asked the agency to remit the balance of $218m out of the $2.4bn third party financing out of which the share for the federation account was $1.58bn.

It also recommended a total end to the subsidy regime in the country.

The $262m, which the NNPC was asked to refund, was in respect of Holding Strategic Stock Reserve, Pipeline Maintenance and Management Cost, and Capital Expenditure.

The committee said, "There is the need for the subsidy regime to be totally discontinued with. All stakeholders should be consulted and carried along as much as possible before abolishing the subsidy.

It further noted that royalties and taxes amounting to $447.8m being outstanding from the Federation Account share from the $6.815bn listings by NNPC on behalf of NPDC, remained unremitted.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: AllAfrica


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters