$49bn Oil Revenue Not Missing – Senate

The Senate, yesterday, cleared the air on the alleged missing $49 billion oil revenue as it said there was no missing fund as alleged, but un-remitted funds which should be remitted to the Federation Account.

The Senate, while adopting the Senator Ahmed Makarfi-led Finance Committee report on the alleged missing money as claimed by the former governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, who is now the Emir of Kano, also rejected the Federal Government’s plan to remove the subsidy on the petroleum products, saying government should embark on sensitisation of the public because of the effects it would have on the common man.

The Senate further mandated its committee on finance to follow up and receive the forensic audit reports from the Auditor General of the Federation and the PriceWaterhouseCoopers (PWC) and also study and report back to the Senate as soon as possible.

In a 21-point recommendation, the Senate accepted the subsidy deducted by the Nigerian National Petroleum Corporation (NNPC) from January 2012 to July 2013 of $5.254 billion (N813,803 billion) since it was certified by Petroleum Product Pricing Regulatory Agency (PPPRA) and appropriated by the National Assembly.

It asked NPDC, a subsidiary of the NNPC, “to remit to the Federation Account $447.8 million being balance of royalty and petroleum profit tax.”

According to the recommendation, “NNPC should refund and remit to the Federation Account $262 million being expenses it could not satisfactorily defend in respect of Holding Strategic Stock Reserve; Pipeline Maintenance and Management Cost and Capital Expenditure.”

Other recommendations include: “The President should prepare and present to the National Assembly supplementary budget to cover the expenditure in the sum of N90.693 billion ($585 million) for PMS subsidy for 2012 and N685.910 billion ($4.430 billion) for kerosene subsidy expended without appropriation by the National Assembly in 2012 and 2013.

“The Senate should, however, note that the proportionate expenditure (January 2012 to July 2013) was N813.8 billion ($5.254 billion) for PMS, while DPK was N486.57 billion ($3.512 billion).

“It is for the National Assembly to approve or not approve such request or take any other measures it deems necessary.”

The committee said NNPC should not pay operational expenditures direct from the Federation funds without appropriation by the National Assembly.

1 COMMENT

  1. This sudden diversionary report is expected. The cover up and make up are just an attempt to put a veil on the issue. Nigerians are no fools. If there is nothing incriminating on the fund, why was the woman seeking judiciary intervention? Why did the presidency refuse to probe? Has the audition completed and concluded?
    Politicians should stop thinking they are wise. The explanation given so far has not erase the fact that there was no accountability in NNPC revenue account. What that report was trying to do is to be economic with the truth.
    Truth has no place in Nigeria again, almost everybody can now be bought with money.
    Why is the report not addressing the kerosene subsidy palava. Subsidy yet we buy it triple the control price. Who are the people behind the high cost? Are they sacred cows? Has the kerosene price defy solution?
    Who are the members of NAS representing? Electorate or their stomach? They are yet to indicate their concern for common man.