THE Natural Resource Governance Institute (NRGI), on Tuesday, said the Nigeria National Petroleum Corporation (NNPC) failed to remit a total sum of $12.3 billion (N2.5 trillion) crude oil proceeds into the Federation Account over a period of 10 years.
NRGI, an international independent body that monitors the oil and gas sector globally, in a report entitled: “Inside NNPC Oil Sales: A Case for Reform in Nigeria,” said NNPC did not forward any revenue from the sales of Okono crude oil between 2005 and 2014.
According to the report, the sales totaled over 100 million barrels with an estimated value of $12.3 billion.
“In other words, the corporation has provided no public accounting of how it used a decade’s worth of revenues from an entire stream of the country’s oil production,” the report said.
Knocking the handling of oil sales by the corporation, NRGI said “NNPC’s approach to oil sales suffers from high corruption risks and fails to maximise returns for the nation.
“These shortcomings also characterise NNPC as a whole. Over 38 years, the corporation has neither developed its own commercial or operational capacities, nor facilitated the growth of the sector through external investment.
“Instead, it has spun a legacy of inefficiency and mismanagement. Its faults have been described by a number of scathing reports, many commissioned by government itself.
“Despite NNPC’s debilitating consumption of public revenues and performance failures, successive governments have done little to reform the company,” it further added.
The report also said it was found that the management of NNPC’s oil sales had worsened in recent years, particularly since 2010.
“The largest problems stem from the rising number of ad hoc makeshift practices the corporation has introduced to work around its deeper structural problems.
“For instance, NNPC entered into poorly designed oil-for-product swap deals when it could no longer meet the country’s fuel needs.

“Similarly, it began unilaterally spending billions of dollars in crude oil revenues each year, rather than transferring them to the treasury, because NNPC’s actual budget process fails to cover operating expenses.
“Some of these makeshift practices began with credible goals. But over time, their operation became overly discretionary and complex, as political and patronage agendas surpassed the importance of maximising returns,” the report noted.
The report added that “these poor practices come with high costs. Average prices for the country’s light sweet crude topped $110 per barrel during the boom of 2011 to 2014. Yet, during that same period, as shown, treasury receipts from oil sales fell significantly. While volumes lost to oil theft explain some of the decline, NNPC’s massive revenue withholdings and an increase in suboptimal sales arrangements are also to blame.
“Mismanagement of NNPC oil sales also raises commercial, reputational and legal risk for actors worldwide: the sales involve some of the world’s largest commodity trading houses, are financed by top banks, and result in the delivery of crude to countries across the globe,” it added.
In its recommendations to the government on how to correct the ills in the corporation, NRGI said the government should pursue two tracks of reform.
“The first involves urgent reforms to NNPC’s management of oil sales (to ‘stop the bleeding’). At the same time, however, the government should also pursue a course of deeper structural reforms to NNPC (to ‘cure the patient’). If it does not, a new round of costly, ad hoc coping mechanisms will emerge,” the report concluded.

http://tribuneonlineng.com/rot-nnpc-corporation-failed-remit-n25trn-10-years-%E2%80%94report

lalasticlala

okay





wow what a huge amount....

I know all the blames will be pushed to pdp.



Dullards see pix below. for the duallards alone, quote me if e pain you





Who dey ontop ma head

Am sure this one of the reasons the governor of Kaduna state called for its scraping because this amount

monumental corruption in Nnpc. where's that lady called deziani?
Baba has said it, If Nigeria doesn't kill corruption, Corruption will kill Nigeria.

Over 10 years? Are we saying OBJ was equally clueless about NNPC or he knowingly stole too like a thief..... Who was d minister b4 diezanni, I guess she learnt from d person... NNC thieves

Haa

The looting has been on from days of old. I pray it doesn't continue as the economic woes in the country is becoming worrisome.
In the 70s Fela sang about all these ugly phenomena:

"..oil money missing missing, they dabaru everybody, supervisor Obasanjo, him set up enquiry, they say money no lost I o. Enquiry come close ooo"

"... The same old politicians wey spoil Nigeria before,... They say them be innocentioooo...."

A chunk of the money was when Deziani was minister.

This is just a small revelation of things to come out.

When Sanusi screamed.....some particular ser of people called for his head. Gradually revelations are coming up.

Thank God for PMB's wisdom of installing someone from the SS as NNPC boss, at least we won't hear cries of witch hunting thats if enemies of Nigeria dont start demonizing him too or calling him a bastard just as Ameachi is suffering all sorts of hatreds from them now.

the more I hear about news like this, the more I feel like declaring slaughter them to currupt

Nna Men,

Can they just scrap this NNPC

Only 2.5 trillion naira? Make una go rest jare!!! The chicken change don go.

Buhari received a visit from Emir Sanusi the very day he announced the appointment of a new NNPC GMD.

This is no coincidence. Sanusi will not rest till the NNPC has coughed out all the hidden monies that it has robbed the nation.

Sanusi's input is critical to any investigation and reform that must occur in NNPC.

Multiply the $12.3 billion by 7 and you would be getting close to the true figure they stole

I disregard this news as theory!

Meanwhile I'm here to tell you that I'm tired of frontpage, if frontpage de kill person I for don die teey teey!

Mushroom organizations seeking undeserved recognition by telling the present government what they want to hear.
Where were they all these while??
Its boring already hearing nonsense, please people involved should be tried and sent to jail if found wanting not all these acts of masturbation

OBJ explain!

This and many other reasons made them to fight PMB's candidacy tooth and nail. God had destined otherwise and now there is no hiding place for them. Slow and steady.

The more reason why Buhari's limit of probe to GEJ's regime a mere charade.

Now that Buhari has heard this, can we pls probe all presidents from 2005 to the immediate past. But if it will be waste of time to probe one and leave others, then Don't waste time on any one at all.. just bring bak the money and use it to resuscitate ajaokuta steel..

Okay

All we see and hear are different allegations and different figures everyday. I'll only be impressed when sombody is prosecuted. Its not enough to go to d media and throw allegations everywhere. Campaigns are over. Prosecute people if u have a case against them shikena

...chei...nigeria na country??...2.5 trilion naira....OBJ and GEJ oya make ona come...

Normally, this is something serious. I hope it isn't treated as just news without action.

I KNOW SAY THIS NNPC NA HACKERS

Chisos, this is too much can't they scrap this NNPC

Oya where are the wailers? GEJ was a thief..its so amazing some idi.ots here could not see that.