Tapre Timine
The House of Representatives has probed the Nigerian National Petroleum Company Limited (NNPCL) over alleged N2 trillion it failed to account for during its transition from NNPC.
The House Committee, chaired by Uju Kingsley was tasked with ascertaining the total inventory, assets, interest, and liabilities of the NNPC and its subsidiaries.
The report adopted by the Committee revealed that the assets of NNPC was worth sixty-four billion dollars during the transition process, but over fifty-eight billion dollars ($58.8b) was transferred to NNPC Limited.
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Despite the transition process, NNPC Limited has not been able to account for the N2 trillion discrepancy that occurred in July 2022 in line with the Petroleum Industry Act. (The transition changed the entity from a state-run entity to a commercial oil company.)
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The report read in part.
“From findings, total assets worth $64 billion (about ₦28 trillion) was unveiled by Mr President but during transfer only $58.8 billion (₦26 trillion at official) at a rate of ₦450 to $1 was transferred, leaving a balance of ₦2 trillion unaccounted.”
The committee also announced the discovery of an N2 trillion liability owed to AGIP Petroleum Limited.
Moreover, the committee has uncovered additional instances of fraud committed by companies associated with NNPC subsidiaries.
The report said:
“Information available to us suggests that some subsidiaries of NNPC, with locations in foreign countries, buy crude oil and gas from NNPC without evidence of their payments for the purchases. These companies are indicted to be operating without employees and no fixed assets; yet over N30 billion is traceable to some of them.”
The committee, therefore recommended a forensic audit of all NNPC accounts with banks to verify the true amount owed to any bank based on loans granted.
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It stated that the audit will also cover movements of funds from NNPC accounts and charges by banks.
Furthermore, the committee asked the federal government to investigate foreign desk offices of NNPC subsidiaries with locations abroad and make international oil companies establish offices in Nigeria and develop a framework that will make the companies answerable to the Laws of Nigeria.
