By EMAMEH GABRIEL and Igho Oyoyo, Abuja
Nigerian National Petroleum Corporation (NNPC) yesterday disclosed that the federal government is still indebted to it to the tune of N239 billion.
This is just as it told the Senate that the company spent N4.07 trillion on securing oil pipelines and repairs, maintenance and petroleum subsidy.
The explanation followed a query issued by the committee to the group managing director of NNPC, Mele Kyari.
Chief financial officer of NNPC, Umar Ajiya made the disclosure when he appeared before the senate committee on public accounts and the office of the auditor general of the federation.
Mr Umar, who came under fire when he was requested by the auditor general of federation to account for domestic lifting of crude oil to Warri and Kaduna refineries, and also explain why over N4 trillion was not remitted to the federation account, said the refineries have not produced in the last two years.
The auditor general, Aghughu Adolphus, who was represented by director of Public Accounts, had earlier reported that from observation and examination of NNPC report to the Technical sub Committee of the Federation Account Allocation Committee in December 2016, an accumulative total of N4.076 trillion remained unremitted to the federation account as at 31st December 2016.
The House of Representatives Public Accounts Committee (PAC) and group managing director of the Nigeria National Petroleum Corporation
(NNPC), Mr Mele Kyari, disagreed over remitted funds of the Corporation to the federation account as stipulated by the 1999
Constitution (as ammended).
The NNPC GMD who appeared before the Committee for the first time after several failed summons was grilled on the financial accounts of
the Corporation on 2015 financial operations.
The committee chairman, Hon Busayo Oluwole Oke (PDP-Osun), stated that Kyari’s appearance was based on the query from the office of the
auditor general of the federation over dwindling government revenue from 2014 till 2020.
The Corporation was queried on the deduction from source of the sum of N865 billion from N2.4 trillion it generated in 2015, which the
auditor general, said was in violation of Section 162 of the constitution which provides that all revenue proceeds should be paid to the federation account.