8 December 2009

Nigeria: Country Lost N300 Billion Oil Revenue in Four Months - Faac

The Nigeria National Petroleum Corporation (NNPC) did not lodge the sum of N300bn in oil revenue into the nation's coffers in the last four months, a document from the Federation Account Allocation Committee (FAAC) indicates.

The document submitted to the House of Representatives Committee on Finance indicated that the NNPC made equity crude oil sales of $1.4bn in the months of August, September, October and November this year but did not remit any amount into the Federation Account.

The NNPC instead paid the money into the JVC cash call, which is an operational account. The NNPC had also within the months paid N161bn as "other JVC deductions from domestic crude sales".

Engineer Haman Tukur, chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) said Nigeria is paying more than it earn from oil saying that JVC deduction from the first line charge by the NNPC is illegal.

The Committee has therefore summoned the NNPC, Department for Petroleum Resources (DPR) and the Ministry of Petroleum to explain the non remittance of the money.

The lawmakers also asked the government to halt the railway modernisation project awarded to China Civil Engineering Construction Corporation (CCECC) at the sum of $8.3 billion by the Obasanjo administration.

The House said the project is presently on arbitration and that all the terms on the award of the contract have ceased to exist until the case is disposed.

The House of Representatives yesterday resolved to investigate three members allegedly caught with ballot boxes during by- election in the Akoko South West/South East federal constituency of Ondo State last Saturday. The House committee on electoral matters headed by Rep Musa Sarki Adar is to carry out the investigation.

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