How NNPC Spent ₦443bn On Subsidy Without Appropriation

How NNPC Spent ₦443bn On Subsidy Without Appropriation
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The Senate Committee on Public Accounts, on Wednesday, made a shocking revelation as to how the Nigerian National Petroleum Corporation (NNPC) allegedly spent ₦443 billion on oil subsidy in 2016 without budgetary provision or appropriation by the national assembly.

To this effect, the panel has summoned the leadership of the oil firm to brief it on the expenditure.

The committee’s chairman, Senator Matthew Urhoghide, issued the summon on Wednesday when the panel considered a 2016 report by the Auditor-General for the Federation.

Read Also: Why We Deliberately Shut Down Nigeria’s Refineries – NNPC

‘During the examination of subsidy records provided by Federation Account Allocation Committee (FAAC), it was observed that total subsidy paid during the year 2016 was ₦443,940,559,974.80,’ the audit report said.

The breakdown of the fund showed that N403.3 billion was paid to oil marketers, while interest & foreign exchange differential gulped N40.6 billion, totaling ₦443.9 billion.

The fund, according to the report, was spent in 2016 without budgetary provision and was deducted at source.

‘This reflects continuing weaknesses in the budgeting process adopted by the Federal Government,’ it added.

Responding to the audit report, the Accountant General of the Federation, Ahmed Idris, told the committee that the NNPC would be in a better position to explain the extra-budgetary spending.

The Chairman of the committee, therefore, summoned the NNPC Group Managing Director, Mele Kyari, to give an explanation on the expenditure.

The NNPC is yet to react to this development.

 

AFRICA DAILY NEWS, NEW YORK

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