Lawmakers To Investigate $60bn Revenue Loss From Alleged Inflated Cash Calls By NNPC

In a move to address revenue loss amounting to over $60 billion, the House of Representatives has pledged to launch an investigation into the Nigerian National Petroleum Company Limited (NNPC) Joint Venture Agreements.

The decision, triggered by a motion presented by Chika Okafor during Wednesday’s plenary, aims to scrutinize the operations of the NNPC Joint Ventures and ascertain potential discrepancies in revenue distribution and adherence to due processes.

Expressing concern over the financial implications, Okafor highlighted that the NNPC, as a representative of the Federal Government and Federation, holds a significant 60% stake in these joint ventures, while other partners share the remaining 40%.

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Emphasizing the importance of transparency and fiscal responsibility, he pointed out that the NNPC’s Upstream Investment Management Services (NUIMS) unit, tasked with negotiating costs, especially capital and operational expenditures, allegedly contributed to losses through inflated cash call costs.

“Due to bloated cash call costs orchestrated by NUIMS, the NNPC has reportedly incurred substantial losses, exceeding an estimated $60 billion over the years,” Okafor asserted.

Simultaneously, the House also advocated the immediate remittance of the accrued five per cent users’ charge on petrol pump prices and diesel to the Federal Roads Maintenance Agency (FERMA).

Leading debate on the motion, Aderemi Oseni, stressed the significance of funding for road maintenance, citing the Federal Roads Maintenance Agency (Amendment) Act of 2007, which stipulates that “5 per cent users’ charge on the pump price of petrol and diesel, with 40 per cent should be allocated to FERMA.”

The House urged key stakeholders, including the Ministry of Petroleum Resources, NNPC, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Ministry of Finance, and Office of the Accountant General of the Federation, to ensure the prompt remittance of the users’ charges to FERMA as mandated by the aforementioned legislation.

Speaking on the urgency of the matter, Oseni emphasized the crucial role funding plays in effective road management and maintenance, underscoring the necessity of channeling these resources to FERMA as outlined in the law.