Tuesday, September 27, 2022

NNPC failed to account for 107 million barrels of crude oil in 2019: Auditor General

The auditor general’s report detailed stated that crude oil allocations from May 30 to December 31, 2019 was not provided for scrutiny.

• March 15, 2022
Adolphus Aghughu, Timipre Sylva and Muhammadu Buhari

The Nigeria National Petroleum Company failed to account for approximately 107,239,436 barrels of crude oil meant for domestic consumption in 2019, according to the Auditor-General for the Federation.

Making this claim in one of the audit queries attached to the federal government consolidated financial statements for the year ended December 31, 2019, the auditor general, Adolphus Aghughu, said NNPC did not provide information of un-utilised crude oil by refineries for 2019.

The report detailed that the crude oil allocations from 30th May to 31st December 2019 was not provided for scrutiny.

“Audit observed that 107,239,436.00 barrels of crude oil were lifted as domestic crude, while allocation of crude oil to refineries for a billing date of 9th January to 29th May 2019 was 2,764,267.00 bbls valued at N55,891,009,960.63,” the report read.

“Information on sale of un-utilised crude oil by refineries for 2019 was not provided, and Information on crude oil allocations from 30th May to 31st December 2019 was not provided for scrutiny,” it added. 

The auditor general in the query mandated the Group Managing Director of NNPC “to provide the complete schedule of allocation of Crude Oil to Refineries from 1st January to 31st December, 2019, furnish details of sale of unutilised crude oil and reconcile it with total domestic crude oil of 107,239,436.00 bbls lifted in 2019 and remit amount realized from sale of unutilised crude oil to the Federation Account.”

The report also alleged that roughly 22,929.84 litres of premium motor spirit (PMS) valued at N7.06 billion pumped to Ibadan-Ilorin and Aba-Enugu depots between June and July 2019 were not received.

It identified inconsistencies between the amount reported by the NNPC as a transfer to the Federation’s account and what the Accountant General of the Federation recorded.

While the defunct NNPC’s records show that N1,272,606,864,000.00 was transferred, the amount reported by the federation’s Accountant General was N608,710,292,773.44, resulting in an N663,896,567,227.58 disparity.

The auditor general in the report requested that the company provide a reconciliation statement for the difference of N88,787,862,853.96 between AGF’s figure of N608,710,296,772.42 and NNPC’s figure per transfer mandate of N519,922,433,918.46. 

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Nigerian Army Headquarters. [PHOTO CREDIT: Civil Military Affairs]

Hot news Home top

Suspected kidnappers nabbed, five people rescued: Nigerian Army

The 2 Brigade Nigerian Army in Uyo says its troops have arrested two suspected kidnappers and rescued five victims on Monday.

President Muhammadu Buhari

Education

Buhari regime mentally lazy, suffering from military hangover by forcing VCs to reopen universities: ASUU

“This is clearly a replica of, or a hangover from, a typical military administration,” said the ASUU coordinator.

Heading 2

Buhari regime keeps military pensioners waiting for their gratuities

“Our esteemed military retirees are please urged to remain calm and patient,” said the Military Pensions Board.

Mining site

Economy

2,119 mining companies in Nigeria did not pay royalties: RMAFC

“There is also the issue of underpayment of royalty by 25 enterprises that exported minerals in 2019 with no record of royalty payments,” RMAFC disclosed.

Heading 1

WTD: Nigeria not at war, Lai Mohammed tells regime’s opponents

“Anybody who has witnessed war will not wish for war or separation,” said Lai Mohammed.

Minister for Humanitarian Affairs, Disaster Management and Social Development, Hajiya Sadiya Umar Farouq.

Heading 4

Buhari regime promises to empower vulnerable Nigerians

“We are shifting away from just giving humanitarian relief to see how we can build the resilience of our people and empower them,” noted the humanitarian minister.