NNPC in hot water over $376 million crude oil deliveries

The Nigerian National Petroleum Company (NNPC) has come under fire from the Senate for its poor record-keeping related to crude oil deliveries to two refineries in the country.

The Senate’s inquiry, which was based on the 2016 Auditor General report submitted by Senator Mathew Uhroghide, revealed that NNPC failed to provide necessary details or breakdown of what was delivered to Warri Refinery and Petrochemical Company and Kaduna Refinery and Petrochemical Company.

The indictment, which was upheld during the plenary session, stemmed 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 both refineries without proper separation, making it difficult to reconcile and account for each lifting.

According to the Senate, a total oil lifting of 8,399,017 barrels with a total sales value of $376,655,589 (N102.6bn) was stated to have been lifted jointly by these two companies. The failure to properly separate the deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting. This issue highlights the importance of maintaining proper record-keeping and financial procedures to ensure accountability and transparency.

Among the 35 other agencies indicted 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, and more. The indictment of 37 MDAs for violating financial procedures in the country underscores the need for strict oversight and regulation to prevent future financial misconduct.

The Senate has recommended that the Group Managing Director of NNPC, Mele Kyari, provide specific details of crude delivered to the two refineries for audit. The upper chamber has also considered a bill that would 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. The Senate’s inquiry highlights the need for transparency and accountability in the oil and gas sector, which has long been plagued by corruption and mismanagement.

This indictment also brings to light the challenges facing Nigeria’s oil and gas industry. Despite being one of the largest oil-producing countries in the world, Nigeria has struggled to manage its oil wealth and provide basic services to its citizens. The country’s oil and gas sector has been plagued by corruption, mismanagement, and environmental degradation, which has contributed to widespread poverty and unrest.

In recent years, there have been efforts to reform the sector and improve governance. President Muhammadu Buhari has made fighting corruption a priority and has taken steps to increase transparency in the oil and gas sector. However, progress has been slow, and the industry remains plagued by corruption and mismanagement.

The Senate’s inquiry into NNPC’s poor record-keeping is a step in the right direction. It demonstrates a commitment to holding government agencies accountable for their actions and promoting transparency in the oil and gas sector. It is essential for the government to continue its efforts to reform the sector and improve governance to ensure that Nigeria’s oil wealth benefits all its citizens, not just a select few.