Presidential poll: Panic in NNPC, other oil agencies

Presidential poll: Panic in NNPC, other oil agencies

The victory of General Muhammadu Buhari in the March 28 presidential election is already causing panic in the Nigerian National Petroleum Corporation (NNPC) and other Federal Government-owned companies in the oil/energy sector.

Officials of the companies, many of whom did not anticipate President
Goodluck Jonathan’s defeat, are now under pressure to bring their
accounts and oil receipts up to date for presentation to the in-coming
government.
Some of the information is even expected to be made available during
the transitional period in the coming days.
President Jonathan yesterday kick-started the transition by meeting
with General Buhari at the State House, Abuja, even as associates of
the President-elect recalled how the late President Nelson Madela of
South Africa predicted,12 years ago, that Buhari would one day return
to lead Nigeria as a civilian president.
It was gathered that the outgoing administration of President Goodluck
Jonathan has commenced the reconciliation of crude oil production
records including royalties and other funds remitted into government
accounts and taxes paid to the Federal Inland Revenue Service (FIRS).
Government expects oil records to dominate discussion at the
transition committee briefings since oil is Nigeria’s financial back
bone. It is a familiar terrain for Buhari who was Commissioner (as the
position was designated under the military) for Petroleum Resources in
the 1970s.
Lately, public interest in the finances of the NNPC has soared, sparked
by an allegation by the immediate past governor of the Central Bank
(CBN), Mallam Lamido Sanusi that $20 billion of its funds was
missing.
For instance, he told a Senate Committee hearing on the allegation
that NNPC officials were withholding large amounts of money from
crude oil exports from the Federation account.
He said that during the period 2012-2013, the NNPC sliced off 76% of
crude oil proceeds – a total of N8 trillion ($48.9 billion).
Sanusi was later suspended and is now the Emir of Kano.
His predecessor at the CBN, Prof. Chukwuma Soludo, said in a
different allegation that about N30tr was either missing or
unaccounted for by the Federal Government.
An audit report prepared by Price Water House Coopers on NNPC
finances showed that less than $2 billion was missing.
Government asked the corporation to pay the money forthwith into its
account.
An oil/gas sector source said yesterday that a major issue being
addressed by the outgoing administration is how to put oil records in
proper perspective because the new government will be interested.
“There is panic in the Ministry of Petroleum Resources, the Nigerian
National Petroleum Corporation (NNPC) and other subsidiaries on oil
receipts,”the source said.
“Already, officials of some of these agencies have been working round
the clock to reconcile oil records in order to be able to face the Buhari
transition team.
“Some of these agencies might also meet with FIRS to make sure that
the records tally. No one expected a Buhari presidency but it has now
come. This requires working round the clock to give full account of oil
production and revenue.”
Another source said: “Feelers indicate that Nigerians would want
cogent explanation on the controversial $20 billion.
“So, the development in the oil sector is key to the work of the
transition committee.”
Sources also said that some of the international oil companies (IOCs)
are prepared to make their records available to Buhari.
“You can see that if any attempt is made to pad the records by any
agency, the IOCs will not be part of it. This is why it is necessary for
every official to be straightforward.
“Some of the IOCs are willing to release the records in their care to
assist the government to put things in order in NNPC and other
agencies.”