The Nigerian National Petroleum Corporation, (NNPC), yesterday, denied owing the Federation Account the sum of N3.8 trillion.
The NNPC said rather, it was the Federation Account an Allocation Committee (FAAC) that was owing it N787 billion from overdraft.
The corporation disclosed this when it appeared before the House of Representatives Public Accounts Committee, to respond to audit queries issued against it by the office of the Auditor General of the Federation.
NNPC Chief Financial officer, Umar Ajiya, who represented the corporation told the lawmakers that the account in question was audited by KPMG at the instance of the governors forum and FAAC.
“The summary of the report indicates that NNPC was owing N557 billion and not N3.8 trillion. The same report established that NNPC was also owed N787 billion. In effect, the federation was owing NNPC N237 billion NGF funding account. From the Nigeria Gas company, the sum of $30.9 million dollars was expended by the NNPC through Nigeria Gas Company funding account. The AuGF has queried the benefit of that account to the federation.”
However, an official of the Office of the Auditor General of the Federation, while explaining the basis for the audit query said: “From the total revenue of N2.4 trillion payable to the Federations Account by NNPC, the corporation deducted N865.4 billion which represented the Joint Venture Cash call before paying the net figure of N1.577 trillion to the Federation Account. The net figure of N582.9 billion was paid into the Federation Account from the total of N608.0 billion collected by the Department of Petroleum Resources after deducting N25 billion as excess proceed from royalty.”
“NNPC made a deduction of N865.4 billion from the revenue collected contrary to the provisions of section 162 of the constitution which stipulate that all revenue collected should be paid into the revenue account. This has been a regular occurrence in previous Auditor General’s reports without positive response from NNPC management.
“The management of NNPC should desist from further violation of the constitution and ensure that all monies accruing to the federations account are promptly paid without any deduction. The federal government should agree on a percent to be paid to the NNPC as cost of collection and any monthly payment to NNPC should be done by FAAC as is being done to other revenue agencies.”
