Again, Senate summons NNPC over non-remittance of N4.07trn

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    The Senate President, Lawan.

    Again,  Senate Committee on Public Account has summoned the Nigerian National Petroleum Corporation, NNPC, over non-remittance of N4.07 trillion to Tuesday Federation account between 2010 till 2016.

    The Committee also summoned Petroleum Products Pricing Regulatory, PPPRA, and Department of Petroleum Resources, DPR, regarding the query of Office of Auditor General of the Federation against the agencies.

    This is even as the Senate Committee on Public Account sustained the query of Office of Auditor General of the Federation against NNPC,  DPR and Federal Inland Revenue Services, FIRS, over unauthorized deduction of N1.5 trillion from the Federation Account. Only the Nigeria Custom remitted the fund generated to the Federation Account before deduction.

    The Nation’s Oil Company had appeared before the Committee chaired by Senator Mathew Urhoghide last two weeks to explain that the N4.07 trillion in question was  expended on oil pipelines  repairs , domestic fuel supplies which were heavily subsidized , security and management matters .

    The Committee however asked NNPC to provide them with the required details within a week , upon which the query will be vacated or sustained .

    But, the Chairman of the Committee while speaking on the Matter said that Although the NNPC has submitted the required documents to them the Committee,  the Corporation still needs to appear before the Committee to give oral evidence and defend some of the things in the document.

    According to him, they need to come before the committee to make further clarification, we give till this week Wednesday or latest Thursday to appear before us.

    NNPC is expected to appear before the Committee before Thursday this week according to the Chairman of the Committee to give explanation.

    The Office of Auditor General had said ”  It was observed from the examination of NNPC report to Technical Sub- Committee of Federation Account Allocation Committee meeting held in December 2016 that a cumulative total of N4,076,548,336,749.75 as summarized below and detailed in  remained unremitted to the Federation Account by NNPC as at 31st December 2016.

    “The total revenue unremitted as at 1st January 2016 (see the table above) from amounts payable into the Federation Account by NNPC was ₦3,878,955,039,855.73 was (not completed)

    “The sum of N1,198,138,355,860.30 was due in revenue to the Federation Account out of the total generated in 2016, however, NNPC paid the sum of N1,000,545,058,966.20 resulting in an amount withheld of N197,593,296,894.02. This brought the total amount withheld by NNPC from the Federation Account as at 31 December 2016.”

    But, NNPC in written response to the Committee claimed that the unremitted N4 trillion was arrived at without taking cognizance of the subsidy and pipeline repairs and management associated with domestic crude oil transaction.

    It said, “subsidy approved and certified by PPRA from 2010-2015 stood at the N4 trillion. Also in 2016 OMS under recovery stood at the N28.6 billion  which brings the total unrecognized subsidy /PMS under recovery to N4 trillion.

    “Aside the above, pipeline repairs and products losses so incurred stood at N966 billion for the same period.”

    Meanwhile, Senate Committee on Public Account sustained the query of Office of Auditor General of the Federation against NNPC,  Nigerian Customs Services and Federal Inland Revenue Services, FIRS, over unauthorized deduction of N1.5 trillion from the Federation Account.

    According to the query, the total revenue inflows to the Federation Account from the various Collecting Agencies as per Central Bank of Nigeria, CBN, Component Statements for the period under audit amounted N6.4 trillion.

    “From the total revenue of N2.4 trillion payable to the Federation Account by NNPC, the Corporation deducted the sum of ₦1.3 trillion for Joint Venture Cash Call, JVC, before paying the resulting net figure of ₦1.07 trillion into the Federation Account.

    “Department of Petroleum Resources, DPR, collected the sum of

    ₦733 billion  but paid a net figure of ₦706 billion to the Federation Account after deducting excess proceeds on Royalty of N26.7 billion. The total amount of ₦2.6 trillion was generated by FIRS for the period under audit; however, the actual amount paid into the Federation Account was ₦2.4 trillion after deducting ₦196.5 billion being the total excess proceeds on royalty.

    ” Nigeria Customs Service, NCS, had a total collection of N638 billion for the period under audit.”

    The query said, “These Collecting Agencies made deductions from the revenue collected by them. This act contravenes the provisions of Section 162 (1) of the 1999 Constitution which stipulates that “The Federation shall maintain a special account to be called “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation.” This has been a regular subject of my reports which has been ignored over the years.

    “The Accountant-General is required to ensure that all deductions made at source contrary to Section 162 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) are stopped. Any payment to be made from Federation Account Revenues should be made by the Federation Account Allocation Committee, FAAC, and not by any collecting Agency. Defaulting Agencies should be appropriately sanctioned.”

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