NNPC operates illegal foreign account, says Senate committee

The Joint Senate Committee investigating the management of fuel subsidy on Monday accused the Nigeria National Petroleum Corporation (NNPC) of operating an illegal account in JP Morgan Bank, U.S.

The joint committee is made up of Petroleum (Downstream), Appropriation and Finance Committees.
The Chairman of the Committee, Magnus Abe, said this at a public hearing of the committee in Abuja.
He said that NNPC operated an account where it kept proceeds from the sales of crude oil before transferring the money to the Federation Account.
He said that the Central Bank of Nigeria (CBN) had informed the committee about the existence of the NNPC account in the bank.
He said that the account was illegal because it breached the provisions of the constitution which stipulated that all government revenues must be paid directly into the federation account.
“CBN came here and said it was aware of the account but that it was not a signatory.
“If the NNPC sells crude, it is supposed to remit such funds to the federation account, but sending such proceeds to any other account before sending to the federation account is illegal,” he stressed.
A member of the committee, Ita Enang, said that there was the need for the ministers of finance and petroleum resources to verify the actual revenue generated by the NNPC.
“You must put in place a mechanism to ensure that the NNPC, FIRS and customs paid all revenues generated into the federation account and not to remit just the target they were given.
“This will ensure that even when they generate surplus revenue, all are remitted into government coffers.
The Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi  Okonjo-Iweala told the committee that NNPC operated the account to facilitate its commercial transactions.
“I am aware that the NNPC runs an account into which all revenue accruable to Federal Government are kept and then transferred into the federation account.
“NNPC being a commercial transactor, probably needs an account where payments are made into before they are transferred to the federation account,” she said.
The Group Managing Director (GMD) of the NNPC, Andrew Yakubu said that CBN was a signatory to the account.
“I am aware that we sell crude and pay the money into an account managed by the CBN.
The committee directed the Executive Director in charge of Finance to appear before it on Tuesday to furnish it with details of the JP Morgan account. 


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  • concernednigerian

    Since the Farouk Lawan affair, we are so disenchanted with the work of the National Assembly, if they do any work at all. We do not want to know of any more expose’ and why only focus on the petroleum sector? Your pay is money down the drain. Spare us your hypocrisy. Let the Jonathan administration continue to institute the necessary reforms of the oil sector because whether Nigeria breaks up or not, and I see no reason why Nigeria should not break up, it is in the interest of the South-South, who bears the pollution and environmental degradation, to have a viable and acceptable Petroleum sector. The rest of Nigeria, save the South-East and the Middle-Belt, are lazy squatters and scavengers just in it for what they stand to gain not what they want to sacrifice. They can shout at their top-most voice about corruption and maliciously rubbish and defame the Jonathan administration not because they are corruption free or ever provided a better leadership but simply because they feel it is an aberration for someone from the Southern minority to break through the glass ceiling. Nigeria must surely break up and let the major ethnic groups ensure they provide not only the appropriate leadership for themselves but also generate the resources to create wealth for their people. The era of the ‘caterpillars of the commonwealth’ is gone for good. Do not flatter yourselves by saying that you castigate only the Jonathan administration and not the South-South because we can see through you. Nothing from the Southern minority will be good enough for you. What was the state of electricity during the eight years of Yoruba rule? What was the state of Nigeria during the nearly 40 years of Northern rule irrespective of the unprecedented revenue generation from oil from the South-South? Let the major ethnic groups be on their own and let the minorities of the South and the North form a union to govern themselves. We are not oblivious of the punishment being meted out to the Middle-Belt because they sincerely voted for the infidel from the South-South in 2011. To you we say: you will never walk alone.

  • protester

    The corrupt and inept national assembly does not have the moral justification to criticise any other person or body for corruption. If a committee is set-up to look into this NNPC allegation, another scandal will emerge. The entire nation stinks!