$50bn Fraud: Govt Audits NNPC Account

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Following revelations by Sanusi Lamido Sanusi, the Central Bank of Nigeria Governor,  that the Nigeria National Petroleum Corporation, NNPC, between 2012 and 2013 failed to remit nearly $50 billion into the Federation Account, the Federal Government has ordered an audit of the corporation’s accounts.

In a statement published in some newspapers on Friday,  the CBN revealed that it was aware that the Minister of Petroleum Resources, Alison Madueke, has directed an audit firm, PWC, to look into the revenues of the NNPC.

CBN said it is  also  aware  of  a proposal  to  set  up  a technical team  made  up of representatives the  Federal Ministry of Finance, the NNPC and  the  CBN to  examine  the  sources of  any  revenue leakages  and propose  appropriate fiscal controls.

“The CBN welcomes  these initiatives and believes  that  they represent a positive contribution to  the  process  of improving the management of  the  economy, especially  if  they  lead  to  greater oversight of the Finance Ministry over oil revenues and improvements in disclosure and transparency in the oil industry.

“The  Central   Bank   of  Nigeria  recognizes   that   there   is  an urgent need  to  review  fiscal  terms  of  sharing  revenues  between the  Federal Government and oil companies  and to  improve governance and transparency in the official  oil sector. This underscores the  need  to  urgently pass a Petroleum  Industry Bill (PIB)  that  addresses  fiscal  terms  and the  structure of the  NNPC. We therefore support the effort of the Federal Government to pass a new PIB,” CBN said.

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The CBN said it will continue to use appropriate channels of communication  in  these  matters and  assured stakeholders of its continued support in all efforts aimed  at  strengthening the Nigerian economy  and  reducing  its vulnerability to shocks from  the external sector.

The CBN governor had in a letter dated 25 September complained to President Jonathan about the continuing refusal of the NNPC to honour its legal obligations, including failure to remit $49.8 billion to the Federation Account between 2012 and 2013. This amount represents 76 percent of the value of crude oil liftings during the period.

Governors under the platform of the All Progressives Congress, have similarly drawn attention to the under-reporting of oil income and the illegal withdrawal of $5billion from the Excess Crude Account.

“Our analysis of the value of crude oil export proceeds based on the documentation received from pre-shipment inspectors shows that between January 2012 and July 2013, NNPC lifted 594,024,107 barrels of crude valued at $65,332,350,514.57,” the letter said. “Out of this amount, NNPC repatriated only $15,528,410,098.77, representing 24 percent of the value. This means the NNPC is yet to account for, and repatriate to the Federation Account, an amount in excess of $49.804 billion of the value of oil lifted in the same period,” Sanusi stated in his letter to the president.

—Simon Ateba

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