NNPC dishonest about oil earnings

Minister of Petroleum Resources, Mrs.
Diezani Alison-Madueke

Eleven governors on the platform of the All
Progressive Congress on Monday accused the
Nigeria National Petroleum Corporation of being
dishonest with the amount the country had
earned from the sales of oil since January this
year.
They also said that the statement, which was
credited to the Acting Group General Manager,
Group Public Affairs Division of NNPC, Ms.
Tumini Green, was “escapist, dishonest,
contradictory and in many respect fraudulent.”
A statement issued by the governors in Abuja
challenged the corporation to tell Nigerians all
revenues collected by it and how much was paid
into the Federation Account.
The governors, who signed the statement were

Kashim Shettima (Borno); Adams Oshiomhole
(Edo); Kayode Fayemi (Ekiti); Rochas Okorocha
(Imo); Raji Fashola (Lagos); and Tanko Almakura
(Nasarawa).
Others were Ibikunle Amosun (Ogun); Rauf
Aregbesola (Osun); Abiola Ajimobi (Oyo); Ibrahim
Geidam (Yobe); and Abubakar Yari (Zamfara).
However, while claiming that NNPC does not owe
the Federation Account, “taking into account
outstanding subsidies and other associated costs
of operations and losses,” the NNPC
spokesperson added that payments had been
made consistently into “its Central Bank of
Nigeria account.”
At the same time Green said that “not all
revenues collected by NNPC are paid directly into
the accounts of Federal Allocation with the CBN.
Some are paid into the accounts of the relevant
government agencies, like the Federal Inland
Revenue Services and the Department of
Petroleum Resources with the CBN.
“But eventually, all these payments are credited
to the accounts of the Federation Accounts
Allocation Committee.”
But the governors, under the aegis of the
Progressive Governors’ Forum, said the NNPC,
apart from telling Nigerians how much it
collected so far, must also be able to explain
how much was paid into the Federation Account.
The governors said, “How much was paid into
the accounts of other relevant government
agencies? How much are credited to FAAC?
“How much was committed to the payment of
the so-called outstanding subsidies? What other
associated costs of operations and losses
incurred and how much?
“Above all, what is the constitutional and legal
provisions governing the management of oil
revenue?”
They called the NNPC’s attention to Section
162(1) of the 1999 Constitution, which, they
claimed stated that, “The Federation shall
maintain a special account to be called the
Federation Account into which shall be paid all
revenues collected by the Government of the
Federation, except the proceeds from the
personal income tax of the personnel of the
armed forces of the Federation, the Nigeria
Police Force, the ministry or department of
government charged with responsibility for
foreign affairs and the residents of the Federal
Capital Territory, Abuja.”
The governors also reminded the NNPC that
there was no where in the Constitution where
exception was granted for any collectible
revenue outside “proceeds from the personal
income tax of the personnel of the armed forces
of the Federation, the Nigeria Police Force, the
Ministry or department of government charged
with responsibility for Foreign Affairs and the
residents of the Federal Capital Territory, Abuja”
as claimed by the corporation.
They said if there was any other law that
empowered the NNPC or any other government
body to do otherwise, that would be
contradictory and to that extent would remain
null and void.