Senate Charges NNPC for Mismanagement of N102bn Crude Oil Deliveries

Senate has indicted Nigeria National Petroleum Company Limited for poor record-keeping for crude oil deliveries to Warri Refinery and Petrochemical Company and Kaduna Refinery and Petrochemical Company worth $376, 655,589 (N102.6bn).

The indictment stemmed from the 2016 Auditor General report submitted and presented by Senator Mathew Uhroghide, which was upheld by the Senate Chamber during the plenary session.

Some of the 35 other indicted agencies are the Office of Accountant General of the Federation; National Population Commission; National Agency for the Control of Aids; FCT Area Council Service Commission; Ministry of Defence; Ministry of Justice; National Drug Law Enforcement Agency, etc.

The query reads, “From the review and examination of domestic crude oil lifting sales profile presented for audit verification, it was noted that several deliveries were stated to be jointly lifted by or delivered to Warri Refinery and Petrochemical Company and Kaduna Refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies.

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“From the examination carried out, a total oil lifting of 8,399,017bbls with a total sales value of $376,655,589 (N102.6 bn) was stated to have been lifted jointly by these two companies.”

According to the Senate on Wednesday, the failure to properly separate the deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting.

The Senate, therefore, upheld the recommendation of its committee, asking the Group Managing Director of NNPC, Mele Kyari, to ensure specific details of crude delivered to the two refineries for audit.

In addition, Senate upheld the indictment of 37 MDAs for violation of financial procedure in the country.

The upper chamber also resolved to submit the report of the indictment to the Office of Secretary to the Government of Federation for further action.

The lawmakers also considered a bill that will enforce the implementation of the outcome of the auditor general report submitted to the National Assembly for consideration.

The deliveries of crude oil from Escravos Terminal for the operation of Warri Refinery and Petrochemical Company and Kaduna Refinery and Petrochemical Company are channeled directly into the WRPC facility.