By Christiana Ekpa
The House of Representatives Committee report has indicated that the National Petroleum Investment Management Services (NAPIMS), a subsidiary of the the defunct Nigerian National Petroleum Corporation (NNPC) has a total assets worth N4.84 trillion.
This indicate that NAPIMS has surpassed the assets of the parent body which the report stated its group Audited Financial Statement, ended 31 December 2020 had a total assets of N15.835 trillion and N16.2 trillion for 2021.
Yet in direct contrast, NAPIMS alone in its Audited Account for same period had N21.04 trillion.
The report Presented by the Ad-hoc Committee of the House to Ascertain the Total Inventory, Assets, Interest and Liabilities of the NNPC and its Subsidiaries before Transfer to the NNPC Limited to ensure a Glossary Accounting System, the report was considered and adopted at the committee of the whole on Tuesday.
The assets and liabilities of NNPC as government establishment were in 2021 transferred to the Nigerian National Petroleum Company Limited (NNPCL), after the enactment of the Petroleum Industry Act, 2020.
As a result, the House empaneled another ad-hoc committee chaired by Uju Kingsley Chima from Imo State to ascertain the total inventory, assets, interest and liabilities of the Corporation and its Subsidiaries before Transfer to the Company.
The Committee’s findings showed that asset worth about N28 trillion was unveiled by the former President but during transfer only N26 trillion at official rate of ₦450 to $1 was transferred, leaving a balance of N2 trillion.
The Committee also found that NNPC had over 25 subsidiary companies, whose profits, assets and liabilities were transmissible to NNPC Ltd.
“Nigerian publication on the 3rd of January, 2022, pointed to the fact, that NNPC is asking the Federal Government to pay additional $1.5 billion to five international oil companies (IOCs) as outstanding Cash Call balance.
“This is additional liability about to be passed on to the NNPC Ltd;
However, our findings show that, as a matter of fact, the Federation has actually paid the liabilities of over $2 billion through President Mohamadu Buhari’s directive.
“Found a liability of over two trillion that NNPC Ltd is about inheriting on behalf of the Federation. No reasonable basis has been established for this liability which is associated with Nigeria Agip Oil Company (NAOC).
“Available information shows that the NNPC assets are stated at historical cost and written-down values; information available to us suggest that some subsidiaries of NNPC, with location in foreign countries, buy crude oil and gas from NNPC without evidence of their payments for the purchases.
“These companies are indicted to be operating without employees and no fixed assets; yet over N30 billion is traceable to some of them”, the report read.
The committee also reported that about 80 companies were owing some various sums.
“From the information above, 80 companies supposedly owe the sum $5,763,278,112.39 on Royalties, $1,004,072,578.72 on Gas Flare Penalty, Concession Rental is $13,173,747.70, and Royalty Gas is $409,577,101.66 while Royalty Gas in Naira is ₦39,815,152,946.95.
“Hence, recommendation is to recover the above debts and transmit to NNPC Ltd. or confiscation of Assets
Value of the debt from the debtors and transfer to NNPC Ltd.
“NNPC spent over ₦1.48 trillion ($396 Million) on Rehabilitation of Refineries (4) between 2015-2022 without significant outcome Port-Harcourt Refineries received about $1.5 billion for total rehabilitation to Technimont SPA Italy. Whereas the same refinery awarded contract for equipment of the refinery for over $250 Million, yet to be delivered”, it stated.
Quoting NNPC Group Managing Director Mele Kyari, the report stated “The Assets of NNPC are worth $60 billion (about ₦25.29trillion) he also said that, already-transferred Assets of the Company of about $59.8 billion, representing 80% of the total Assets due to NNPC Limited and that the Current Assets been transferred to NNPC Limited was being evaluated”.
However, the committee further recommended that “NNPC, Federal Government should work modalities that will ensure removal of subsidy in accordance with Petroleum Industry Act (PIA) that stipulates that subsidy be removed within six (6) months of operation of PIA;
“Investments and operations of International Oil Companies (IOCs) should be further investigated and scrutinized present budget before implementation and Fund for Innovation Development (FID);
“External Auditors should the liabilities of over two (2) trillion Naira being inherited by NNPC Limited on behalf of the Federation. There is need to further establish the current market values of NNPC, especially under a devalued Naira regime.
“Federal Government should investigate foreign desk offices of NNPC subsidiaries with locations abroad, and make International Oil companies to establish offices in Nigeria and develop a framework that will make the companies answerable to the Laws of Nigeria.
“Forensic auditors to first audit all NNPC accounts with all the banks to verify the following, the true amount owned any bank as per loan(s) granted (2) to know the exact movements of funds
from NNPC accounts, as well as over charges by banks, which is a huge amount of money and will be a source of additional revenues to the Federal Government and the defaulting banks should be made to refund the sum discovered back to NNPC/Federal Government with interest.
“NNPC should Auction the Equipment and transfer proceed of equipment awarded for PortHarcourt refinery in the sum of $250M (yet to be supplied) to NNPC Limited.”
