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HomeTop NewsHow NNPC paid N443 bln fuel subsidy without approval ~Senate

How NNPC paid N443 bln fuel subsidy without approval ~Senate

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The Nigerian National Petroleum Corporation (NNPC) has been accused by the Senate Committee on Public Accounts of making payment of N443 billion for fuel subsidy without appropriation.

According to the Chairman of the Senate Committee on Public Account, Mathew Urhoghide the discovery was made through the audit reports of the Auditor General of the Federation.

He said the 2016 report of the Auditor General of Federation, is being considered by the Committee.

The audit report stated that “During the examination of Subsidy records provided by FAAC, it was observed that total subsidy paid during the year 2016 was N443,940,559,974.80.

“Oil Marketers- Arrears for 2014 Paid in 2015 -Payments during the Year 2016 without Interest 403,321,449,046.76 Interest & Forex Differential 40,619,110,928.04 totalling N443,940,559,974.80 Subsidy Deducted at Source By NNPC.

“This reflects continuing weaknesses in the budgeting process adopted by the Federal Government.”

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The Accountant General of the Federation, Ahmed Idris, told the Committee that the NNPC will be in a better position to explain the extra-budgetary spending.

The Committee has summoned the NNPC and the Central Bank of Nigeria (CBN) over the disappearance of $9.5 million interest from Investment Petroleum Profit Tax (PPT), Royalty and Foreign Excess Crude.

The invitation was sequel to the 2016 Auditor-General Report which accused the CBN of failing to present documents supporting the investment for verification.

The Senate observed no letter supporting the investment of the fund and the actual amount invested was not made known.

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