Exposed! NNPC withdrew N1.4tr subsidy from crude sales
Contrary to the practice where subsidy payments are claimed from the Petroleum Support Fund (PSF) through the Petroleum Product Prices Regulatory Agency (PPPRA) by all qualified companies, the Nigerian National Petroleum Regulatory Corporation (NNPC) allegedly withdrew subsidy payment of N1.40 trillion from domestic crude oil sales proceeds before remittance to the Federation Account from 2009 to 2011.
This fact was revealed by the Independent Oil and Gas Industry Audit Report, covering 2009 to 2011, put together by the Nigerian Extractive Industries Transparency Initiative (NEITI).
The reported noted that subsidy payments claimed by NNPC increased by 110 per cent, as the payments rose from N198 billion in 2009 to N416 billion in 2010.
NEITI chairman, Mr. Ledum Mitee, who presented the report in Abuja on Thursday, said in 2011 alone, the subsidy payments rose to N786 billion and the increase between 2009 and 2011 was 186 per cent.
His words: “The financial report clearly underlines that contrary to the practice where subsidy payments are claimed from the Petroleum Support Fund (PSF) through PPPRA by all qualified oil marketing companies, that the NNPC draws subsidy payments directly from domestic crude sales proceeds before remittances to the Federation Account. As a result a sum of N1.40 trillion was claimed during the period by NNPC as oil subsidy payments.”
The report noted that financial flows from the Nigerian Liquified Natural Gas (NLNG) include dividends and repayment of loans of which $4.84 billion was received by the corporation.
The report confirmed that these amounts have not been remitted neither to the Central Bank of Nigeria /NNPC JP Morgan Account nor the Federation Account.