The Nigerian National Petroleum Corporation said it spent a whooping N966 billion for repairs of pipeline between 2010 to 2015.
This came in response to a query by Senate Committee on Public Account chaired by Senator Mathew Uhroghide over alleged unremitted N4 trillion by the corporation into the federation account.
The Committee relied on the 2016 report of Auditor General of the Federation which accused the NNPC of non-remmittance of N4 trillion into the Federation Account.
The Query stated “It was observed upon scrutiny of NNPC report to the Technical Sub- Committee of Federation Account Allocation Committee meeting held in December 2016 that a cumulative total of N4,076,548,336,749.75 remained unremitted to the Federation Account by NNPC as at 31st December 2016.
“The total revenue unremitted as at 1st January 2016 (see the table above) from amounts payable into the Federation Account by NNPC was ₦3,878,955,039,855.73 was.
“The sum of N1,198,138,355,860.30 was due in revenue to the Federation Account out of the total generated in 2016, however, NNPC paid the sum of N1,000,545,058,966.20 resulting in an amount withheld of N197,593,296,894.02. This brought the total amount withheld by NNPC from the Federation Account as at 31 December 2016.”
But, NNPC in a written response to the Committee claimed that the unremitted N4 trillion was arrived at without taking cognizance of the subsidy and pipeline repairs and management associated with domestic crude oil transaction.
It said, ”subsidy approved and certified by PPRA from 2010-2015 stood at the N4 trillion. Also in 2016 OMS under recovery stood at the N28.6 billion which brings the total unrecognized subsidy /PMS under recovery to N4 trillion.
“Aside the above, pipeline repairs and products losses so incurred stood at N966 billion for the same period.”
The NNPC is expected to appear before the Senate Committee this week to give clarification on the issue raised in the Auditor General report over non – remittance of N4 trillion into federation account.