The
Nigerian National Petroleum Corporation (NNPC) yesterday said the $10.8
billion out of the allegedly unremitted $49.8bn is likely to be traced
in some of the costs incurred during its operations.
The corporation denied it ever said the sum of $12 billion or $10.8billion was “missing’’.
Dr. Omar Farouk Ibrahim, NNPC spokesperson, said in a statement yesterday that 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 domestic crude oil utilization.
“One of such issues is the unpaid subsidies on kerosene and premium motor spirit (PMS).
It would be recalled that Dr. Okonjo-Iweala was earlier in 2013 reported to have stated that she had not paid any subsidy on kerosene since she assumed office. The truth of the matter is that since 2007 when the late former President Umaru Yar’Adua reviewed the prices of petroleum products following the general strike in protest against the price hike by his predecessor, the issue of subsidy payment on kerosene was left hanging and NNPC was mandated to continue to sell the product at a subsidized rate of N50 per litre. Since then, not a dime has been paid to the corporation as subsidy on the product,” he said.
“However, for the purpose of strategic reserve, at the rate of 40 million litres of PMS national consumption per day, NNPC maintains about 32 days’ sufficiency of petrol. The cost incurred in this mandate is also part of the $10.8bn yet-to-be-reconciled outstanding figure,” the statement explained.
A third component which, according to him, make up the yet-to-be-reconciled balance is the cost of pipeline vandalism and oil theft. “The cost of repairs each time the pipelines are hacked is also an issue”, he added.
It also stated that what was said and agreed by all parties, comprising Minister of Finance, Minister of Petroleum Resources, Governor of the Central Bank of Nigeria (CBN) and Group Managing Director of the NNPC, at a joint press conference, December 18, was that $30 billion 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,” he said.
Dr. Omar Farouk Ibrahim, NNPC spokesperson, said in a statement yesterday that 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 domestic crude oil utilization.
“One of such issues is the unpaid subsidies on kerosene and premium motor spirit (PMS).
It would be recalled that Dr. Okonjo-Iweala was earlier in 2013 reported to have stated that she had not paid any subsidy on kerosene since she assumed office. The truth of the matter is that since 2007 when the late former President Umaru Yar’Adua reviewed the prices of petroleum products following the general strike in protest against the price hike by his predecessor, the issue of subsidy payment on kerosene was left hanging and NNPC was mandated to continue to sell the product at a subsidized rate of N50 per litre. Since then, not a dime has been paid to the corporation as subsidy on the product,” he said.
He further said that since January 2012 NNPC has been importing the bulk of the PMS used in the country, successfully keeping the nation wet with products, especially PMS as can be verified from the absence of queues at petrol stations during the end of year festivities. “So the corporation is left to bear these responsibilities on behalf of the federal government and these costs are part of the yet-to-reconciled balance,” he said.He explained that another area the corporation incurs huge expenditure on behalf of the federal government is the maintenance of national strategic reserves for petroleum products as a result of pipeline vandalism.
“However, for the purpose of strategic reserve, at the rate of 40 million litres of PMS national consumption per day, NNPC maintains about 32 days’ sufficiency of petrol. The cost incurred in this mandate is also part of the $10.8bn yet-to-be-reconciled outstanding figure,” the statement explained.
A third component which, according to him, make up the yet-to-be-reconciled balance is the cost of pipeline vandalism and oil theft. “The cost of repairs each time the pipelines are hacked is also an issue”, he added.
It also stated that what was said and agreed by all parties, comprising Minister of Finance, Minister of Petroleum Resources, Governor of the Central Bank of Nigeria (CBN) and Group Managing Director of the NNPC, at a joint press conference, December 18, was that $30 billion 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,” he said.
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