By Moses Patience Chat
The House of Representatives has called for a forensic audit of the Nigerian National Petroleum Company (NNPC) Limited to determine its assets and liabilities, as well as its current market value.
This was revealed by the House Ad Hoc Committee on NNPC’s assets and liabilities in a report that was issued to the legislature at the plenary on Tuesday, where the House claimed that NNPC Limited is yet to account for a N2 trillion balance from the purchase of assets worth N28 trillion during the Buhari Administration. They said that during the transaction, only N26 trillion was transferred, leaving a balance of N2 trillion that could not be accounted for.
The investigation was based on a motion moved by a member, Ibrahim Isiaka, which was titled “Need to ascertain the total consolidated inventory, assets, interests and liabilities of the Nigerian National Petroleum Corporation and its subsidiaries before transfer to the NNPC Limited to ensure a glossary accounting system.”
“From findings, asset worth $64bn (about N28tn) was unveiled by Mr President (Buhari) but during transfer, only $58.8bn (N26tn at the official rate of N450 to $1) was transferred, leaving a balance of N2tn unaccounted. NNPCL should be made to re-assess her accounting system,” the report read in part.
Reacting to the report, the Chief Corporate Communication Officer of NNPC Limited, Garba-Deen Muhammad, said the firm had nothing to hide and would answer any question from the Reps members.
“They have been asking us questions and we’ve been answering them. So if they have any more questions for us, we will oblige and attend to them.
“We respect them and recognize their rights to perform their functions. NNPCL doesn’t have anything to hide,” he said.
According to the Committee, NNPC Limited and the Federal Government “should work modalities that will ensure removal of subsidy by following the Petroleum Industry Act (PIA) which stipulates that subsidy be removed within six months of operation of the PIA.
The Committee further recommended that external auditors conduct an audit on the liabilities of over N2 trillion being inherited by NNPC Limited on behalf of the federation and that there is a need to further establish the current market values of NNPC, especially under a devalued naira regime.