Reps declare N320bn missing from crude oil remittance

Chairman, House of Representatives Committee on Finance, Hon
Abdulmumuin Jibrin, last weekend declared N320billion missing from the
remittance by the Nigeria Nationl Petroleum Corporation (NNPC). He
said that the sum of N1.516 trillion was paid in by NNPC into the
Federal Government treasury.
Jibrin noted that what Nigerians want is total remittance of revenue
generated from oil sales and not crude oil sales figures declared
recently by the Ministry of Petroleum Resources. He said: "It should
be noted that this is after taking into consideration, payments for
Joint venture cash calls (i.e. cost of production) and petrol subsidy
payments. However, only N1.516 trillion has been remitted to the
Federal Government coffers by the NNPC showing a shortfall of N320.654
billion for the period", the lawmaker noted.
"Again, it should be noted that this is actual revenue generated at
the prevailing market rate of crude oil and gas. The budget for the
Fiscal year 2013 was based on $79 per barrel, whereas the price had
hardly fallen below $100 per barrel for the whole year. This implies
that even though we are receiving way above the benchmark on our crude
oil and gas sales, we are not meeting our targets because our crude
oil production has fallen way below budgeted estimates as a result of
massive crude oil theft and unabated corruption in the oil and gas
sector,"Jibrin lamented
The Finance Committee chairman maintained that Nigerians are not as
keen on crude oil sales figures as the actual remittances from in NNPC
to the federation account, adding that the amount remitted was more
important and NNPC should have been more honest to present the figures
so that Nigerians could understand what actually accrued to the
Federal Government.
His words: "For January to September 2013, the federation was expected
to earn N1.837 trillion (or N204.168 billion per month) from the sale
of crude oil and gas marketed by the NNPC with the Petroleum Minister
as its board chairperson".
The lawmaker insisted that figures available to the House Committee on
Finance showed that revenue targets were only barely met in the months
of April (N212.029 billion) and May (N210.202 billion). While in July,
targets were not met (N191.549 billion), N35.103 billion was
transferred to the excess crude account
According to him, "the Ministry of Petroleum/NNPC has to be held
accountable for this shortfall. The MTEF deliberations and revenue
framework for the fiscal 2014 year will have to look extensively into
this worrying situation. If this trend is allowed to continue, it will
have devastating consequences on our economy which is still dependent
to the tune of over 80% on the petroleum industry".
"At last, it is gratifying to note that after a barrage of
well-deserved criticisms from well-meaning observers of the oil and
gas industry, the Nigerian National Petroleum Corporation, NNPC, is
finally making effort to come clean with the recent release of figures
of crude oil sales allegedly totalling $20.9bn for the first seven
months of 2013, Jibrin said.