Nigeria’s state-owned oil company, NNPC, opens its accounts to ‎public


The Group General Manager Group Public Affairs Division, Ohi Alegbe, said the publication would be available on the corporation’s official website.

In other to ensure transparency in Nigeria’s state-owned oil company, NNPC, the new management has begun a monthly publication of its provisional financial and operational reports.

The publication is in line with the pledge of the new Group Managing Director of the state-owned oil firm, Ike Kachikwu, to open the books of the corporation for public scrutiny.

Billions of dollars have been stolen or mismanaged in the state-owned firm since Nigeria began commercial exploitation of crude oil in the 1960’s, various reports have shown. The statement by Nigeria’s immediate past Governor of the Central Bank, Lamido Sanusi, that about $20 billion was missing from the firm’s account led to his removal from office by ex-President Goodluck Jonathan. The current administration of President Muhammadu Buhari has, however, pledged to ensure transparency in the oil firm and recover monies stolen between 2011 and 2015.

Recently, the Minister of Petroleum during that period, Diezani Alison-Madueke, who travelled to the UK since Mr. Buhari’s emergency as president, was arrested in London for money laundering and is expected to be prosecuted there.

On Sunday, the General Manager Group Public Affairs Division of the NNPC , Ohi Alegbe, said the monthly publication would be available on the corporation’s official website.

He said details of the reports include overview of NNPC’s operations across the oil and gas value chain (Upstream, Midstream & Downstream) as well as NNPC’s agency functions on behalf of the federal government for the period between January and August 2015.

Specifically, Mr. Alegbe said the report provides detailed and unprecedented statistical insight into crucial aspects of the Corporation’s activities ranging from National Crude Oil & Natural Gas Production, Lifting and Utilization; Refineries Plants Operations; and Petroleum Product Supply & Distribution to NNPC Budget Performance Report and Federation Crude Oil & Gas Revenue.

The report also includes illustrated tables, graphs and charts on all aspects of NNPC’s operations which were considered opaque. These include issues like the status of the JP Morgan Foreign account, management and custody of revenue from crude oil sales, actual production capacity of the refineries, dollar accruals to NNPC/FGN from export crude oil and gas, as well as receipts & payments.

The report showed that a total of $607.8 million has so far been paid into the Federation Accounts Allocation Committee, FAAC, during the year from the sales of export oil and gas as dollar proceeds.

A further breakdown indicates that the total export crude oil & gas receipt for January to August 2015 was $3.420 billion.

Of the total receipts, about $0.61 billion was remitted to Federation Account as dollar proceeds, while the balance of $2.815 billion was used to fund the Joint Venture, JV, cash call for the period.

Similarly, the report revealed that revenue receipts declined sharply by more than 67 per cent from September, 2014, against the peak figure in July, 2015 with dire consequences to the Federation.

The decline in oil price, the report said, led to insufficient cash available to meet monthly JV Cash Call obligations of about $615.8million as appropriated by the National Assembly.

To mitigate this effect, the report disclosed that the NNPC was compelled to sweep all the export receipt to JV Cash Call funding implying a zero dollar proceed remittance to the Federation Account since the month of April 2015.

The sum of N723.82billion for Domestic Crude Oil and Gas Sales proceeds has been paid to the Federation Account from January to August 2015 as Naira proceeds.

Categories: NNPC Nigeria

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