The Nigerian National Petroleum Corporation has put money spent on pipeline repairs within the space of five years, including money lost as a result of product loss at N966 billion.
The explanation came in response to the query raised in the 2016 report of the Auditor General for the Federation currently being scrutinised by Chairman of the Senate Public Account Committee, Senator Mathew Urhoghide.
According to the Corporation, the N966bn expenses and losses were calculated to be between 2010 and 2015.
The Senate panel had insisted on probing the NNPC on an alleged failure to remit N4tn into the federation account as contained in the AuGF report.
“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,” part of the AuGF report read,
However, the NNPC in a written response said ‘the unremitted N4tn was arrived at without taking cognisance the subsidy and pipeline repairs and management associated with domestic crude oil transaction’.
The NNPC said, “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.”
SOURCE: sweetcrudereports.com