NNPC Insists $10.8b Crude Oil Proceeds Not Missing

CBN GOVERNOR, SANUSI LAMIDO (L) AND NNPC GROUP MANAGING DIRECTOR, ANDREW YAKUBU

The Nigerian National Petroleum Corporation (NNPC) has insisted that $10.8billion out of $49.8billion purportedly said to be missing is being reconciled.

The Governor of Central Bank of Nigeria, CBN, Malam Sanusi Lamido had raised the alarm in a memo to President Goodluck Jonathan towards the end of last year that the government-owned oil firm had failed to remit $49.8bn (about N8 trillion) to the Federation Account between 2012 and July 2013 – the amount he said represented 76 per cent of the value of crude oil lifting during the period. The CBN Governor later recanted following a meeting between the apex bank, Ministry of Finance, Petroleum Ministry, NNPC, FIRS and the budget office to reconcile the account, saying the shortfall yet to be reconciled was $10.8bn.

General Manager, Media Relations Department, Group Public Affairs Division, Dr. Omar Ibrahim Farouk, in a rejoinder affirmed that the issues surrounding the allegation of unremitted $49.8bn against the Nigerian National Petroleum Corporation (NNPC) have since been explained but it appears the initial dust raised in the process is yet to settle.

He stated that “We are therefore constrained to respond and clarify the issues once again to help those who do not yet understand the clarification made earlier by the Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala; Minister of Petroleum Resources, Mrs.  Diezani Alison-Madueke; Governor of the Central Bank of Nigeria (CBN), Malam Sanusi Lamido Sanusi; and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu at a joint press conference which was widely reported in the media.

“For the avoidance of doubt, there was no where it was stated or admitted by any of the parties in the course of the press conference or anywhere else that the sum of $12bn or $10.8bn out of the alleged unremitted $49.8bn is ‘missing’.

“The truth of the matter is that as at the time of the press conference, $30bn of the alleged unremitted oil revenue had been reconciled by all the parties involved. Dr. Okonjo-Iweala did explain that the reconciliation was an ongoing process and that the balance of $10.8bn is still being reconciled.

“At no time did anybody, neither the Coordinating Minister of the Economy nor the CBN Governor, say that the outstanding $10.8bn was ‘missing’.

“It is simply curious how some section of the media are not prepared to see the difference between the two positions – reconciliation in progress versus money missing. These two positions are simply not the same thing no matter the angle from which anyone chooses to see them.

“Having made that point, it is also pertinent to further clarify that NNPC as a national oil company is saddled with certain onerous responsibilities that other oil companies are freed from. For instance, as the supplier of last resort, NNPC has the responsibility of ensuring that there is adequate supply of petroleum products whether the market is favourable or not.

“The yet to be reconciled $10.8bn can be located in the expenses on some of the responsibilities which the Corporation carries out on behalf of the Federal Government with respect to the domestic crude oil utilization”.