Senate in session
The Senate Tuesday stunned the nation when it accused the Nigerian National Petroleum Corporation (NNPC) and its subsidiary company, Nigerian Petroleum Development Company (NPDC) of fraudulently failing to remit over $5 billion due to the federation account from crude oil lifting.
The Senate therefore mandated its Committees on Petroleum Upstream and Finance to investigate the matter with a view to recovering all amounts due to the federal purse from the deals and also forward to the National Assembly its yearly estimate for repairs and pipeline operations and maintenance for appropriation.
This followed a motion by Senator Dino Melaye who described non-remittance by the corporation as unlawful, willful misappropriation and criminal, stressing that the NNPC and NPDC have been carrying out crude oil lifting under questionable circumstances.
Melaye in his motion told the Senate that since 2013 to date, the NPDC has continued to lift crude oil from divested oil wells OML 61, 62 and 63 and amounts worth over $3.487bn have not been remitted to the federation account. He also accused the company of lifting crude from divested oil wells OML 65, 111 and 119 to the tune of $1.847 billion out of which it paid only $100 million to government coffers.
The Senator also accused the NPDC of failing to remit some $344.442million to the federation account from January to August 2016, lamenting that all these happened in spite of the much touted anti-corruption stance of the government.
Melaye said: “While this practice may have started before the present administration, it has continued under the watch of the new Administration without abating. So much so that in this year alone between January August, a total of $344.442 million worth of oil has been lifted by NPDC without remittance to the Federation Account and also not paying royalties and other taxes on these lifting.
“The continuing practice of withholding part of domestic crude oil sales proceeds by NNPC for use in pipeline repairs and product losses. Despite the much trumpeted anti-corruption stance of the current administration that this level of corruption could still be nestled and tucked in by highly placed individuals is derisive of the entire anti-corruption fight.”
Melaye said the money so far withheld illegally by the NNPC and NPDC can build about 11 world-class fully equipped teaching hospitals as well as 6 health care centres in each of the 774 local government areas of the country and could add on the national power grid 4,000 megawatts of electricity.
“I stand this morning with a very heavy heart to ask my colleagues that I need the nod of the Senate to inform the senate about a satanic collaboration between the NNPC and NPDC, there is a case of unlawful misappropriation and criminal withholding of public revenue by NNPC and NPDC from 2013 to date.
“The way and manner the two agencies of government have been carrying out crude oil lifting have not been transparent.
“No senator can be distinguished unless every Nigerian is. No Member of the House of Representatives can be called honourable unless every Nigerian is. No President or Governor should be excellent unless every Nigerian is.”
