Not less than N936,027,634,479.81 being proceeds from crude oil sales remains unaccounted for by the Nigerian National Petroleum Corporation (NNPC). The same applies to about $998,881.77 earned as interest on Joint Venture Cash Call Account.

Principally, crude oil sales at the NNPC is the major function of the Crude Oil Marketing Division (COMD) of the corporation.

A detailed audit of NNPC’s crude sales conducted by the Office of the Auditor General of the Federation (OAGF) in 2013 also unraveled shocking fraud and shady procedures in the system of the internal accounting process of the corporation.

Section 3.35 of the report obtained by Nigerian Pilot stated that “it was observed from the explanation of NNPC mandates to CBN on domestic crude oil sales that a total sum of N936, 027,634,479.81 was not remitted to the Federation Account by NNPC within the period under review.” The report noted that as at the time of the audit under reference, NNPC had just commenced refunds of another debt of N450million, representing previous under-remittances to the Federation Account.

The audit report from the OAGF therefore stated that “the Group Managing Director of NNPC had been informed through the Accountant General of the Federation to provide explanation for the flagrant attitude of withholding domestic crude sales revenue and the withheld amount of N936,027,634,479.81 should be refunded urgently and the recovery particulars forwarded to my office for verification.”

On the interest earned on Joint Venture Cash Call, the auditors said they observed that “a total of US$998,881.77 as detailed below was earned as interest on Joint Venture Cash Call Account in the year 2012. There was no budgetary provision for this amount as income receivable into the Joint Venture Cash Call Account.”

The auditors therefore informed the management of NNPC through the OAGF “to refund the interest of US$998,881.77 earned on the Joint Venture Cash Call Account to Federation Account as petroleum related revenue and evidence of the payment forwarded to this office for audit confirmation.”

As at the time of filing this report, no holistic audit of the NNPC has been carried out, putting to question whether recommendations of that panel was adhered to, even as the Senate is billed to undertake a comprehensive oversight on the corporation.

•Text courtesy of Nigerian Pilot.