NNPC: We Spent $10.8b Missing Funds To Subsidize Fuel In 2012

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The Nigerian National Petroleum Corporation (NNPC) has given more details of how it spent the alleged missing $10.8 billion, which is part of the controversial “unaccounted” $49.8 billion oil revenue. The corporation claimed that the bulk of the money was spent subsidising fuel in 2012.

NNPC group executive director, Finance and Accounts Directorate, Bernard Otti made the statement yesterday in Abuja adding that the $10.8b reflected expenditures incurred by the corporation during the period under review and are “really made up of the following: subsidy claims, $8.49b, pipeline management and repair costs, $1.22b, products/crude oil losses $0.72b, and cost of holding the strategic reserve, $0.37b.”

The NNPC’s director of Finance stressed that the expenditures were incurred as part of statutory responsibilities which the NNPC as the national oil company executes on behalf of the federal government and by extension the people of Nigeria, stressing that the NNPC has broken no laws in deducting those costs in line with the NNPC Act.

Otti said NNPC is a law-abiding corporate entity and that its processes and procedures are guided by the provisions of the law. He maintained that all expenditures incurred in the discharge of the above national responsibilities are backed by the law setting up the corporation.

Also Tim Okon, NNPC’s coordinator, corporate planning and strategy, in his own account submitted that government does not provide the NNPC with funds from the national budget to defray costs such as repairs of pipelines and management of the country’s strategic reserve, amongst others. Such funds are therefore deducted at source from proceeds of crude oil.

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