{"id":8507,"date":"2016-04-01T21:20:03","date_gmt":"2016-04-01T21:20:03","guid":{"rendered":"http:\/\/newsroom247.com.ng\/?p=8507"},"modified":"2016-04-01T21:20:03","modified_gmt":"2016-04-01T21:20:03","slug":"nnpc-withholding-more-revenue-under-buhari-than-it-did-under-jonathan-says-report","status":"publish","type":"post","link":"http:\/\/newsroom247.com.ng\/?p=8507","title":{"rendered":"NNPC \u2018withholding more revenue\u2019 under Buhari than it did under Jonathan, says report"},"content":{"rendered":"

\"NG-[C:G.Mobi,B:Infi,Wk:1316,Dim:336X280]:Infinix\"
\n<\/a><\/code>The Nigerian National Petroleum Corporation (NNPC) withheld 12 percent more money in six months under President Muhammadu Buhari than it did with his predecessor\u00a0from\u00a02013 to\u00a02014.<\/p>\n

According to a report by the National Resource Governance Institute (NGRI), an international non-profit policy institute with focus on oil, gas and minerals, NNPC withheld more in the last six months of 2015 than in the first six.<\/p>\n

\u201cUnder the Buhari government, transfers from NNPC\u2019s convoluted oil sales system to the Federation Account have continued to decline,\u201d the report read.<\/p>\n

\u201cAfter analyzing NNPC\u2019s own numbers, we estimate that during the last six months of 2015, the corporation transferred $2.1 billion in oil proceeds to the Federation Account from the three types of oil sales we examined: regular export sales, domestic crude sales, and sales of oil from NPDC fields.<\/p>\n

\u201cDuring that same period, however, the value of these sales totaled $6.3 billion. In other words, under the Buhari government, only one third of NNPC\u2019s oil sale revenues found their way into the country\u2019s treasury.<\/p>\n

\"\"<\/a>\"\"<\/p>\n

\u201cThe figures show that NNPC retained $4.2 billion in the last six months of 2016, 14 percent more than what was withheld in (Goodluck) Jonathan\u2019s last days as president.<\/p>\n

\n

NNPC withholdings of selected oil sale revenues<\/p>\n<\/div>\n

\u201cNNPC reported retaining $4.2 billion\u2014or 66 percent\u2014of the value of the oil sold through these three types of transactions.<\/p>\n

\u201cAs seen in the figures below, this was 14 percent more than the corporation\u2019s withholdings under Goodluck Jonathan in the first half of 2015, and 12 percent higher than the share withheld in 2013 and 2014.<\/p>\n

\u201cGo back a decade, and the numbers nearly flip: in 2005, NNPC sent 68 percent of its oil sale earnings to the Federation Account and kept only 32 percent.\u201d<\/p>\n

The report, which was compiled based on NEITI financial audit reports, NNPC financial reports, and NRGI\u2019s investigations, revealed that NNPC withheld 52%, 52% and 59% of its revenue in 2013, 2014 and 2015 respectively.<\/p>\n

WHERE DOES THE MONEY GO?<\/strong><\/h3>\n

NRGI did not stop its research on how much was retained by the NNPC, but takes the process further to unveil tentative locations where the monies end up.<\/p>\n

According to the report<\/strong>, some of the monies are used to pay outstanding joint venture debts, refineries, and the rest to NPDC which it referred to as \u201cone of the Nigerian petroleum sector\u2019s great black boxes\u201d.<\/p>\n

\n

NNPC withholdings of revenues, January-June versus July-December 2015<\/p>\n<\/div>\n

\u201cThe subsidiary (NPDC) produced a sizeable 110,000 barrels of oil per day in the last six months of 2015.14 But we have seen no evidence that proceeds from NPDC oil sales enter the treasury.<\/p>\n

\u201cInstead, they are spent in an unknown manner. In one especially questionable case, we found evidence that NNPC has retained all earnings from the offshore Oil Mining Lease (OML) 119, a field owned wholly by NPDC that produces around 30,000 barrels per day of Okono grade crude.\u201d<\/p>\n

These revelations have called Buhari\u2019s fiscal responsibility message to question, with NRGI saying \u201ccorruption aside, allocating $4.2 billion in six months to NNPC expenses of unknown priority raises serious questions about fiscal responsibility\u201d.<\/p>\n

NNPC ACT AND CONSTITUTION AT LOGGERHEADS<\/strong><\/h3>\n

Recommending probable solutions to the president, NRGI said \u201cclarifying the financial relationship between NNPC and the state may be the single most important component of the Buhari administration\u2019s oil sector reform campaign\u201d.<\/p>\n

Shoe week<\/strong>
\n<\/a>\"\"\"\"<\/a>\"\"<\/code><\/p>\n

The report further recommends that a \u201clongstanding misalignment\u201d between the NNPC Act of 1977 and the 1999 constitution \u201cleaves this money in legal limbo\u201d.<\/p>\n

NRGI seeks that \u201cthe government should put in place a clear, legally enforceable rule governing which revenues NNPC can keep\u201d.<\/p>\n

NRGI commended Buhari and his team for clearly working towards a cleaner oil sector, stating that much of its focus has been limited to replacing unethical officials and tracking stolen funds.<\/p>\n

\u201cThe leadership can build on gains made to date by clarifying the financial relationship between NNPC and the state,\u201d it concluded.<\/p>\n

https:\/\/www.thecable.ng\"nnpc\"<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Nigerian National Petroleum Corporation (NNPC) withheld 12 percent more money in six months under President Muhammadu Buhari than it did with his predecessor\u00a0from\u00a02013 to\u00a02014. According to a report by the National Resource Governance Institute (NGRI), an international non-profit policy institute with focus on oil, gas and minerals, NNPC withheld more in the last six […]<\/p>\n","protected":false},"author":1,"featured_media":8508,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"ngg_post_thumbnail":0,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1],"tags":[297,1725,338,1724],"class_list":["post-8507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-neiti","tag-ngri","tag-nnpc","tag-npdc"],"jetpack_featured_media_url":"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2016\/04\/nnpc.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4oswh-2dd","_links":{"self":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/8507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8507"}],"version-history":[{"count":1,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/8507\/revisions"}],"predecessor-version":[{"id":8509,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/8507\/revisions\/8509"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/media\/8508"}],"wp:attachment":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8507"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}