The House of Representatives on Tuesday quizzed the management of Nigerian National Petroleum Corporation Limited (NNPCL) over the projected N10.8 trillion revenue for the 2024 fiscal year.
Chairman, House Committee on Finance, Hon. Abiodun James Faleke who presided over the hearing on revenue generated by key MDAs held in Abuja, also demanded for details of all joint ventures (JVs) contracts with International Oil Companies (IOCs) so far.
After the scrutiny of the documents submitted to the Committee, the lawmakers expressed fears over the possibility of attaining the crude oil production as well as the revenue forecast for the year under review.
According to the document exclusively seen by Nigerian Tribune, 1.644mbpd for January, 1.551mbpd for February, 1.475mbpd for March, 1.478mbpd for April, 1.564mbpd for May, 1.774mbpd for June, 1.819mbpd for July, 1.838mbpd for August, 1.850mbpd for September, 1.904mbpd for October, 1.889mbpd for November and 1.946mpbd for December, 2024, respectively.
Similarly, the lawmakers who spoke in turns questioned the projected N368 billion being 40% profit sharing from production sharing contract (PSC) of 113.1 billion for January, N9.8 billion for February, N30.7 billion for March, N8.2 billion for April, N16.0 billion for May, N25.9 billion for June, N26.6 billion for July, N27.0 billion for September, N27.8 billion for October, N27.6 billion for November and N28.4 billion for December, 2024, respectively.
The lawmakers also queried the rationale behind the static N81.2 billion dividends being paid on monthly basis from January to December, 2024 despite the projected increase in crude oil production.
Members of the Committee also demanded for update on the Frontier Basin projects embarked on by the Corporation as stipulated in the Petroleum Industry Act (PUA) across the country, including Bauchi, Sokoto-Bida, among others.
The lawmakers also inquired into the revenue projected from gas supply which they argued was low,
Responding to various questions from the lawmakers, NNPCL Chief Financial Officer (CFO), Mr. Umar Ajiya disclosed that from the N10.8 trillion revenue projection submitted in the 2024 Appropriation plan, the company has so far remitted the sum of N2.5 trillion into government’s coffers as at the end of the first quarter of 2024.
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The breakdown of the revenue paid include: N2.50 trillion from upstream, N22.53 billion from gas and power, N24.69 billion from Downstream and N1.10 billion from other sources which was not disclosed by the Chief Operating Officer.
He however assured the Committee that the company may surpass the N10.8 trillion revenue projection.
While responding to question bothering on the engagement of a private company – Tantita for pipeline security, Mr. Ajiya discloser that the Corporation was able to attain the current 1.5mbpd as against the 1.0mbpd after the engagement of Tantita Security company.
He also explained that the decision on naming and shaming those involved in the economic sabotage is solely the responsibility of the Court, as well as security agencies, adding that while Nigerian Navy has the capacity to track every vessel on Nigerian waterways, only Tantita has made arrest of those involved in oil thefts.
On the fluctuation of the crude oil production, he explained that the company has a couple of investments being carried out including the 40,000bpd crude oil production.
He also confirmed that the IOCs partners are divesting not only because of insecurity but due to fiscal incentives in other jurisdictions.
Mr. Ajiya also informed the Committee that the Electricity Generation Companies (GENCOs) are owing the Company the sum of N500 billion prior to President Bola Tinubu’s administration.
Chairman of the Fiscal Responsibility Commission (FRC), Mr. Victor Mururako, NNPCL has failed to provide relevant financial documents for scrutiny in breach of extant financial regulations.
While noting that the company had no record of remittances by the NNPCL as expected by law, the FRC helmsman who was represented by Mrs. Victoria Adizou-Angakuru, said: “Ours is just a plea as regards their remittance to the purse of the government, which is the CRF.
“The Commission has observed that NNPCL has not really been having a good rapport with FRC. They have been meeting other agencies like RMFAC and OAGF to resolve disputes regarding their operating surplus remittances but they have never come to FRC for reconciliation.
“Our table shows that from 2007 to 2018 we have computed the liabilities against NNPCL but we are not saying these liabilities are still existing but we don’t have any evidence as against any remittance they could have made.
“We want to plead that they should also meet with FRC the custodians of the Act in which these other agencies are using to determine their liability.”
While ruling, Hon. Faleke mandated NNPCL to reconcile it’s account with office of Accountant General of the Federation as well as Fiscal Responsibility Commission (FRC) and report becak on Wednesday.
NIGERIAN TRIBUNE