The office of the Auditor-General for the Federation (AuGF) has said that the defunct Nigeria National Petroleum Corporation (NNPC), now NNPC Limited, failed to account for about 107,239,436.00 barrels of crude oil lifted for domestic consumption in 2019.
The AuGF also said that available records from the performance report of two depots revealed that about 22,929.84 liters of PMS valued at N7.06 billion pumped to the two depots (Ibadan-Ilorin and Aba-Enugu) between June and July 2019 were not received by the depots.
This revelation formed part of six audit queries from the Auditor General for the Federation as contained in the Federal Government of Nigeria consolidated financial statements for the year ended December 31, 2019, submitted to the clerk to the National Assembly via a letter dated August 18, 2021 and signed by the Auditor General, Adolphus Aghughu.
The report identified discrepancies between the amount reported by the NNPC as transfer to the federations account and what was reported by the AuGF.
It said that while the NNPC records showed that N1,272,606,864,000.00 was transferred by the corporation, the amount recorded by the Accountant General for the federation was N608,710,292,773.44, showing a discrepancy of N663,896,567,227.58.
The AuGF said the Group Managing Director of the NNPC should be asked to explain the discrepancy between the two figures and remit the balance of N663,896,567,227.58 to the federation account or face sanction.
The report also said that the sum of N519,922,433,918.46 was transferred to the federation account by the NNPC based on transfer mandates while demanding that the company provide “reconciliation statement for the difference of N88,787,862,853.96 between SGF’s figure of N608, 710, 296, 772.42 and NNPC’s figure per transfer mandate of N519,922,433,918.46”.
It said: “Audit observed that 107,239,436.00 barrels of crude oil were lifted as domestic crude, while the allocation of crude oil to refineries for a billing date on January 9, to May 29, 2019 was 2,764,267.00 barrels valued at N55,891,009,960.63.”
It further noted that “Information on the sale of un-utilised crude oil by refineries for 2019 was not provided, and information on crude oil allocations from May 30, to December 31, 2019, was not provided for scrutiny.”
While alleging possible diversion of domestic crude, diversion of sale of un-utilised crude as well as possible loss of federation account revenue, the report said the management of the NNPC failed to respond to the audit query.
The AuGF said the Group Managing Director of NNPC should justify non-adherence to the transfer of all federation revenue to the federation account as provided by the 1999 Constitution (as amended) and ensure that all revenue is paid into the federation account going forward
The report also said that “the audit examination on ‘schedule of inflow of revenue’ by NNPC to federation account obtained from the Office of the Accountant General of the Federation revealed that the domestic gas receipts of N4.572 billion was transferred to Federal Inland Revenue Service (FIRS) Petroleum Profit Tax (PPT)-gas in the month of January 2019, and was not made in the subsequent months of the year.
“This transfer reduced the amount due to Federation Account for the month of January, 2019 to the tune of N4.572 billion” leading to possible “reduction of distributable revenue in the Federation account, misapplication of fund and diversion of revenue”.
It said that about 22,929.84 litres of PMS valued at N7,056,137,180.00 pumped to two depots in the country in 2019 were not received by the depots while no reason was advanced by the agency for the non-receipt of the product, demanding that the value of the products be remitted to the federation account.
It further said that a total 239,800 barrels of crude oil valued at N5.498 billion was received in Warri and Kaduna refineries respectively between January and December 2019 with the source of the crude not validated due to absence of source documents, while money was allegedly classified as crude oil losses without duly completed form 146 to be processed for further investigation.
Source: Solacebase