Senate Demands Answers From NNPC Boss, Over Missing N102 Billion Worth of Crude Oil Deliveries

Senate Demands Answers From NNPC Boss, Over Missing N102 Billion Worth of Crude Oil Deliveries

  • NNPC has been unable to account for over N102 billion worth of crude oil sales according to a recent audit report
  • The missing crude oil lifted and delivered to Warri, Kaduna Refineries were recorded in the auditor general report released for 2016
  • The Senate has begun a probe and wants NNPC to provide records on the crude oil it lifted and supplied to the two refineries

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

In 2016, the Auditor General released a report indicating that the Nigerian National Petroleum Corporation Limited (NNPCL) was unable to account for crude oil deliveries worth over $376,655,589 (N102.6 billion) to the Warri and Kaduna refineries.

Recently, the Senate Committee on Public Accounts, led by Senator Matthew Urhoghide, reviewed the report and determined NNPCL must provide a detailed account of the crude oil lifted and supplied to the two refineries.

Read also

Report shows naira lost half its value against US dollar under President Buhari

All 109 senators representing the 36 states of Nigeria unanimously agreed upon the findings of the committee on Wednesday, April 7, 2023.

Crude oil sales
Senate wants NNPC Mele Kyari to explain what happened to the crude oil Photo credit: @nnpc
Source: Twitter

These queries are part of a larger investigation into 37 Ministries, Departments, and Agencies (MDAs).

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Senators demand answers

The Senate wants Mele Kyari, the group managing director of NNPCL, to provide details of the crude oil lifted from Escravos Terminal and the associated finances.

The query of the Senate reads:

“From the review and examination of domestic Crude Oil Lifting sales profile presented for audit verification, it was noted that several deliveries were stated to be jointly lifted by or delivered to Warri Refinery and Petrochemical Company (WRPC) and Kaduna refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies.

Read also

Nigerian export company, Neveah gets N20 billion upsize Commercial Paper Programme

“From the examination carried out a total oil lifting of 8,399,017; bbls with a total sales value of $376.6 (N102.6 billion) was stated to have been lifted jointly by these two companies.
“The failure to properly separate these deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting."

This is not the first time that the NNPC has come under scrutiny for its financial practices.

Legit.ng had earlier reported that NNPC failed to account for 104.48 million barrels of domestic crude oil it lifted in 2019.

Also, there is a ongoing court with the Ogun state government.

Nigeria sold N21tn worth of crude oil in 2022

Meanwhile, in another report, it has been revealed that Nigeria sold N21.09 trillion worth of crude oil in 2022.

The sales recorded a 46.41% increase compared to N14.41 trillion in 2021.

Read also

Nigerian consumers call cor ban on imported energy drinks

NBS captured the sales in its fourth quarter foreign trade report obtained by Legit.ng from its website.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

Online view pixel