Disappeared: NNPC Fails to Explain Missing N2trn Worth of Domestic Crude Oil Lifted in 2019

Disappeared: NNPC Fails to Explain Missing N2trn Worth of Domestic Crude Oil Lifted in 2019

  • The Auditor-General has raised an alarm on domestic crude oil lifted by the NNPC and was not accounted for in 2019
  • The 104.48 million barrels of missing crude oil could have added at least N2 trillion to the federal government's coffers
  • The federal government 2019 budget of N8.83trn was largely financed by debts which currently stands at N35.5trn as of June 30

The Nigerian National Petroleum Corporation (NNPC) has failed to account for 104.48 million barrels of domestic crude oil it lifted in 2019.

This is according to a report conducted by Dataphyte using NNPC annual report and the latest Auditor General report.

The report established that in 2019, NNPC lifted a total of 107.24 million barrels as domestic crude, out of which it only accounted for 2.76 million barrels.

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Disappeared: NNPC Fails to Explain Where Over N2trn Worth of Crude Oil Lifted in 2019 Went to From Its Account
Details from NNPC annual report Credit: Dataphyte
Source: Facebook

How much is missing?

The Auditor General report sighted by Legit.ng also noted that the 2.76 million barrels allocated to the domestic refineries were valued at N55.89 billion.

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The report noted that information about the whereabouts or sales of the remaining 104.48 million barrels of crude oil was not provided.

The 104.48 million barrels of oil missing when calculated to 2019 average $64.3 per barrel in 2019 this comes to about $6.64 billion(N2.7 trillion).

NNPC response

The report showed that the Auditor-General requested an explanation for the missing crude oil but no response was given.

This consequently raised the fear that the unaccounted barrels of the domestic crude or the money from its sales may have been diverted.

Auditor-general said:

Information on Sale of Un-Utilized Crude oil by Refineries for 2019 was not provided, and Information on crude oil allocations from 30th May to 31st December 2019 was not provided for scrutiny.

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Dataphyte report also showed a similar situation played out in 2011 when NNPC was unable to account for 65,000 barrels of crude out of the 445,000 barrels allocated to it daily, costing the country the sum of N1.033 billion daily and N31.005 billion monthly.

The implication

The missing crude oil, if it was sold, could have saved the federal government from more borrowing and also help in the funding of critical infrastructures in the country.

As of June 30, 2021, Nigeria's debt stood at N35.5 trillion and the missing crude could have helped reduce the burden.

Aside from the debt, missing crude is a momentary loss on the revenue to the Federation Account, and it could in fact have an effect on investors confidence as NNPC's plans to become a public limited company.

Customs tells NNPC to set up filling stations Neighbouring countries

Meanwhile, Hameed Ali, the comptroller-general of customs, has asked the NNPC to immediately set up filling stations in neighbouring countries like Niger, Benin among others.

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He disclosed this on Monday at an interactive session organised by the House of Representatives committee on finance, Premium Times reported.

Ali said there is nothing anybody can do to totally stop the smuggling of petroleum products.

Source: Legit.ng

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