Politics

We spent N4trillion on subsidy, N966billion on pipeline repairs – NNPC

Mr. Mele Kolo Kyari, the new Group Managing Director of the Nigerian National Petroleum Corporation (NNPC)

The Nigerian National Petroleum Corporation (NNPC) has stated that it spent N966billion to repair pipelines between 2010 and 2015.

This was contained in a response to a query raised in a 2016 report of the Auditor General of the Federation.

The Senate Public Account Committee led by Senator Matthew Urhoghide, who is probing the report had insisted that the NNPC must explain why it failed to remit N4trillion into the federation account (according to the report of the AuGF).

Read the report by the AuGF below in parts; “It was observed from the examination of NNPC report to Technical Sub- Committee of the Federation Account Allocation Committee meeting held in December 2016 that a cumulative total of N4.08tn remained unremitted to the Federation Account by the NNPC as at 31st December 2016.

“The total revenue unremitted as at 1st January 2016 from amounts payable into the Federation Account by NNPC was ₦3.88tn.

“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, the 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 the NNPC from the Federation Account as of 31 December 2016 to N4,076,548,336,749.75.”

In its response, the NNPC stated that the unremitted N4trillion was arrived at without cognisance the subsidy and pipeline repairs and management associated with domestic crude oil transaction.

“Subsidy approved and certified by Petroleum Products Pricing Regulatory Agency from 2010 to 2015 stood at N4tn.

“Also in 2016, PMS under recovery stood at the N28.6bn which brings the total subsidy /PMS under recovery to N4tn.

“Aside the above, pipeline repairs and products losses so incurred stood at N966bn for the same period.”

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