The Nigerian National Petroleum Company Limited (NNPCL) is being questioned by an ad hoc committee of the House of Representatives regarding an alleged unaccounted amount of N2 trillion during its transition from NNPC.
During the plenary session on Tuesday, the House Committee of the Whole House adopted the report presented by the committee, which revealed that the assets of NNPC were valued at $64 billion (approximately ₦28 trillion) during the transition process. However, only $58.8 billion (₦26 trillion) was transferred to NNPC Limited.
Chaired by Uju Kingsley (APC, Imo), the committee was assigned to determine the complete inventory, assets, interests, and liabilities of NNPC and its subsidiaries.
The transformation from the former NNPC to NNPC Limited took place in July 2022, aligning with the provisions of the Petroleum Industry Act. This transition resulted in the entity’s conversion from a state-run organization to a commercial oil company.
As stated in the report, the committee found that NNPC Limited has been unable to explain the N2 trillion discrepancy satisfactorily.
“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 report read in part.
Additionally, the committee revealed an alleged liability of N2 trillion owed to AGIP Petroleum Limited; however, no supporting evidence was found to substantiate this claim.
- Osun Community Celebrates ‘Century-Long Miracle’ with Power After 91 Years
- Federal High Court Welcomes 23 New Judges on Oct 4
- Bosun Tijani: Nigeria holds the key to Global Energy
- Anambra Airport Renamed in Honor of Literary Icon Chinua Achebe by Governor Soludo
- Governor Grants Amnesty to 17 Inmates on Nigeria’s 63rd Independence Day
Furthermore, the committee uncovered further instances of fraud involving companies associated with NNPC subsidiaries.
“Based on the information at our disposal, it appears that certain NNPC subsidiaries located abroad have been purchasing crude oil and gas from NNPC without providing any evidence of payment for these transactions. These companies are suspected to operate without employees or fixed assets, yet over N30 billion can be traced to some of them,” stated the report.
Recommendations: The committee has proposed several recommendations based on its findings. It has called for:
- An audit is to be conducted on the alleged N2 trillion liability inherited by NNPC Limited. This audit will aim to verify the accuracy and validity of the claimed liability.
- A forensic audit of all NNPC accounts held in various banks. This audit will ensure a thorough examination of the accounts to determine the precise amount owed to each bank based on granted loans. The audit will also investigate the movement of funds and bank charges related to NNPC accounts.
- The federal government should investigate the foreign desk offices of NNPC subsidiaries located abroad. The government should also enforce regulations requiring international oil companies to establish offices in Nigeria. This move aims to create a framework that holds these companies accountable to Nigerian laws.
These recommendations, proposed by the committee, were adopted without any amendments by the Committee of the Whole House.