‘Missing’ $20bn: Senate asks NNPC to account for $2.4bn

The Senate yesterday gave the Nigerian National Petroleum Corporation until Friday to account for $2.4 billion oil revenue, following the corporation’s failure to do so during Thursday’s investigative hearing into the alleged missing $20 billion revenue.

The Senate committee on Finance had asked the NNPC to withdraw its initial submission that only $2 billion was missing, as certain discrepancies which were identified indicated that the actual amount yet to be accounted for was $2.4 billion.
But the NNPC maintained claims that the $2.4 billion was paid as third party financing, out of the $67billion realised from crude oil sales between January 2012 and July 2013.

Chairman of the committee, Senator Ahmed Markafi, asked the NNPC to give precise details into the $2.4 billion payment for third party financing, and present a fresh memo accounting for same.
Acknowledging the discrepancies in the corporation’s submission to the committee, Group Managing Director of NNPC, Andrew Yakubu, said: “in view of the confusion, there is need to further clarify and align figures. So we will withdraw the submission and present it again.”

The committee had pointed out that figures in the memo as read out during the hearing were confusing.
Also, the Acting Governor of the Central Bank of Nigeria (CBN), Sarah Alade, at the hearing stressed that the apex bank would ensure that the law was respected in terms of compliance to what fraction of crude oil revenue generated by the NNPC should be remitted to the federation account.

The CBN boss gave the assurance following Markafi’s insistence demanding to know what percentage of revenue generated from crude oil transactions be remitted to the federation account.
Markafi said: “Look, the committee expects the CBN to provide details on the percentage that ought to be paid to the federation account by the NNPC.

“We should try to be as specific as possible if we are saying something. If you are not in a position to know, then it is wrong to assume.”
Markafi however announced that the committee would soon commence private sittings to analyze all submissions received during the course of investigations into the missing funds.