NEWS

Senate faults NNPC’s Non-remittance Of N3.87trn Crude Sales

By Gift Eguavoen

The Senate has faulted the Nigerian National Petroleum Corporation (NNPC) for under remitting the sum of N3.87trillion revenue from domestic crude oil sales to the Federation Account for the period of January to December, 2015.

Accordingly, the upper chamber called on the Corporation to desist from further deduction at source as this contravenes Section 162(1) of the 1999 Constitution as amended.

Extractive 360 learnt that the Senate also mandated the Federation Accounts Allocation Committee (FAAC) or any other approving authority to, as a matter of urgency, approve agreed percentage which should be allocated to NNPC monthly as operational cost to ensure that their operations are not adversely affected.

These formed parts of the 59 recommendations adopted by the Senate and contained in the report of the Committee on Public Accounts on the Annual report of the Auditor-General for the Federation on the Accounts of the Federation for the years ended 31st December, 2015, according to a statement issued on Wednesday by Ezrel Tabiowo, Special Assistant (Press) to President of the Senate.

The Senate in one of its adopted recommendations to the Executive arm of government noted that the outstanding collection from Solid Minerals (N12,137,140,361.58) not remitted to the Federation Account, but kept in an account maintained by the Central Bank of Nigeria contravenes the provisions of Section 162(1) of the 1999 Constitution as amended.

The chamber, therefore, charged the FAAC to fix a percentage to be allocated to Mining Cadastral Office as cost of collection as is currently applicable to NCS (7 percent), DPR (4 percent) and FIRS (4 percent) of non-oil revenue.

On Unretired Advances involving 39 Ministries, Departments and Agencies (MDAs) to the tune of N2.29billion, the upper chamber demanded the sanctioning of accounting officers of MDAs in accordance with the provision of Rule 3124 of Financial Regulations.

It also call gave the Accountant-General of the Federation, Ahmed Idris, a deadline of 90 days to identify and sanction officers responsible for mismanagement of public funds to the tune of N54.15 billion ($274,280,000.00) as exchange loss on external loans.

In addition, the Senate gave another 90 days timeline for the Office of the Accountant-General of the Federation to set in motion the process of recovery of Internal Loans made from other Funds which stands at N390.28billion and to be paid back into the Special Funds Accounts.

The source of the loans are from the Development of Natural Resources Account, Stabilization Fund Account, 25 percent Husked Brown Rice Levy, 1 percent Comprehensive Supervision Scheme (CISS) Pool Levy, 15 percent Wheat Grain Levy, and 10 percent Rice Levy.

 

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