Reps Constitute Sub-Committees to Probe NNPCL, NUPRC, Others Over Unpaid Royalties, indebtedness to FG
By Juliet Vincent
The Public Accounts Committee (PAC) of the Nigerian House of Representatives on Monday constituted two sub-committees to ascertain the state of indebtedness of Nigerian National Petroleum Company (NNPC) Limited and others in Oil and Gas Industry to the Federation Account as well as analysis of NUPRC Remitta records.
The two sub-committees are to be headed by the Deputy Chairman, Hon. Jeremiah Umaru, and Hon. Olusola Fatoba are to report back to the Committee in two weeks for further action.
Chairman of the Committee Hon. Bamidele Salam made the decision over the issue raised in the Auditor-General 2021 report on the consolidated financial Statement against the Nigeria Upstream Petroleum Regulator Commission (NUPRC).
The report raised three queries against NUPRC which include; “Outstanding Royalties due from NNPC-COMF MCA/PSC totaling $253,952,693.07, Unjustified deductions from joint venture Royalty by NNPC before Remitting to DPR (now NUPRC) totaling $204,853,744,047.39. Outstanding Royalties on Oil, Gas, concession Rentals and Gas flared payable by operators to federation Account totaling $2,260,448,992.45 and N48,216,163,192.67, among other”.
Chief Executive of NUPRC, Engr. Gbenga Komolafe while responding to the issue of outstanding royalties, said the outstanding revenue due from NNPC as of 31st Dec 2021 has been paid to the tune of $224.3m, leaving a balance of $29.6m that is still outstanding.
“NUPRC has sent a series of demand notices to the NNPC to clear the outstanding debt and even reported them to the Honourable Minister of Finance to intervene but to no avail.
“The NUPRC has a revenue collection strategy which includes sanctions and invocation of fine and penalty sections of PIA 2021,” he stated.
He explaining that the NUPRC has limitations in applying necessary sanctions against the NNPC and other licensees in the oil and gas sector.
The NUPRC MD said the agency was conscious of the volatility of the industry as well as Nigeria’s economic dependence on oil revenue to avoid anything that can cause untoward effects.
He, however, assured the committee that the Agency will always operate within the law and uphold best corporate governance policies.
Members of the committee demanded proof from the NUPRC that the various sums of monies alleged by the Auditor General of the Federation as uncollected revenue from the NNPC and major oil and gas operators have been recovered since the end of the 2021 financial year.
The Public Accounts Committee unanimously agreed to constitute the technical sub-committees to ascertain the state of indebtedness of NNPC and others in the Oil and Gas sector.
Earlier in his remarks, the Chairman of the Public Accounts Committee, Hon. Bamidele Salam, assured all parties involved in hearings of the Committee’s fairness and openness in considering all queries by the Auditor General as well as other issues before it.
The Chairman said as a committee that sits in an investigative capacity, it would not pronounce anyone guilty without providing ample opportunity for defense through an open hearing.