Reps investigate failure by NNPC to remit crude oil sales, royalties, and taxes
By Jeph Ajobaju, Chief Copy Editor
Shocked federal lawmakers have initiated investigation of the Nigerian National Petroleum Company (NNPC) for intentionally whithholding N2 trillion of public funds generated as oil revenue in the Muhammadu Buhari years.
Under Buhari – who weakened all governance structures through laziness and dereliction of duty – nearly all ministries, departments, and agencies (MDAs), like the NNPC – behaved as though they were quasi-governments operating on their own, with each head acting like a president who was not accountable to anyone.
For instance, NNPC Chief Executive Meley Kyari refused to answer several audit queries issued by the federal Auditor General, as documented in his reports to the National Assembly (NASS).
Buhari, who also took on the portfolio of Petroleum Minister, failed to supervise the ministry and failed to query or call Kyari to order.
The House of Representatives has directed its Committee on Finance (when constituted) to investigate the alleged non-remittance of the $2 trillion and other alleged scams in the NNPC.
Uduak Odudoh, who raised the allegation in a motion, accused the NNPC of disrespecting and downplaying the collective intelligence of Nigerians.
He noted that Section 162(1) of the Constitution 1999 (as amended) provides for “the Federation Account” in which all revenues collected by federal agencies are paid, except such exempted therein.
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‘Federation Account’ belongs to entire federation
Odudoh reiterated “the Federation Account” belongs to the entire federation while the federal government keeps the account in trust on behalf of the three tiers of government and citizens, per reporting by The Guardian.
He reiterated the Revenue Allocation Act prescribes basis for disbursement of revenue accruing to the Federation Account between federal, state, and local governments
He argued that national development largely depends on how transparent and accountable relevant government agencies and corporate entities are in the collection, remittance, and disbursement of revenue collected.
Odudoh recounted how the Federation Account Allocation Committee (FAAC) had accused NNPC of shortchanging it by refusing to pay over N2 trillion to the Federation Account from crude oil sales, royalties, and taxes.
He said Nigerians are aware the NNPC has repeatedly averred the federal government owes it more than N4 trillion in subsidy payments, power debts, and other sundry charges and, therefore, would not remit revenue until the debts are recovered.
After debating the motion, the House directed its Finance Committee (when constituted) to investigate the allegation.