Orders PPPRA to pay N4.4b to govt
. NNPC, others to refund N3.7b
. Corporation owes govt N1.305 tr
. Nigeria loses $10b to oil theft
AN audit report covering the period of 2009 to 2011 which was released on Monday by the Nigeria Extractive Industries Transparency Initiative (NEITI) was a catalogue of fraudulent deals in the oil and gas sector.
Shocked by its findings, NEITI has recommended that key government’s agencies should refund various amounts to the country’s treasury.
Presenting the NEITI’s independent audit report Monday in Abuja, Chairman of NEITI Board, Ledum Mitee, quoted the report as demanding that the Petroleum Products Pricing Regulatory Agency (PPPRA) should return N4.423 billion to the Federation Account just as it recommended the Nigerian National Petroleum Corporation (NNPC) and other unnamed oil firms to pay N3.715 billion being ‘over-recovery’ for the period under review into the national account.
Apart from the various sums of money the identified agencies are to return, the report blamed the lack of co-ordination of pricing methodology for most of the pricing conflicts.
He added: “Our report also recommended that the PPPRA should remit all funds amounting to N4.423 billion arising from the over-recovery collected to the Federation Account. From the findings of the report, the subsidy payments made through NNPC increased from N198 billion in 2009 to N416 billion in 2010 and nearly doubled when it rose to N786 billion in 2011. During the same period, subsidy paid through PPPRA increased from N208 billion in 2009 to N278 billion in 2010 and also increased astronomically to N1.12 trillion in 2011.
“Other key findings made by the audit include poor inventory management, which accounted for the difficulty in determining depot balances for imported products. The report noted that the amount of N4.423 billion being over-recovery collected from some marketers is yet to be remitted to the Federation Account while NNPC and two other companies are yet to refund N3.715 billion being over-recovery for the period under review. NEITI also discovered a lingering worrisome situation where there is no agreed pricing methodology between NNPC and the companies for the determination of fiscal values for royalty and PPT computations.”
The report said: “The Control Account shows that NNPC owes N1.305 trillion to the federation as at December 31, 2011. The opening balances in the debtors’ accounts have been reconciled to the 2008 NEITI audit report. It should be noted that the above opening and closing balances do not include outstanding payments on subsidies as these are still being verified by the respective agencies of government. Read more