“FG Reconciling N7.96billion Additional Subsidy Claim” – NNPC

The Nigeria National Petroleum Corporation, NNPC, on Wednesday, March 16, stated that the Federal Government was reconciling additional N7.96 billion subsidy claims.

In its rejoinder to the report of Auditor-General of the Federation (AGF) Samuel Ukura that indicted the NNPC for failing to remit N3.235 trillion, the Group Executive Director/Chief Financial Officer (Finance & Accounts), Isiaka Andulrazaq, said that the Petroleum Products Pricing Regulatory Agency (PPPRA) had approved and certified that N2.34 trillion was spent on fuel subsidy between January 2012 and December 2014.

It added that the figure owed to the Federation Account as at January 2015 Federation Account Allocation Committee (FAAC) meeting report was N326,142,137,205.79 (which is still being reconciled) and not the N3.23 trillion alleged by the AGF.

According to the rejonder, “the total amount of subsidy that have been approved and certified by PPPRA for the period of January 2012 to December 2014 was N2.34 trillion. An additional N7.96 billion subsidy claim is still under reconciliation.”

f natural gas allegedly transferred to some undisclosed ‘coded account’, it should be noted that NNPC does not have secret accounts.

It said: “The fact is that the alleged $235Million represent proceeds from the sale of gas feed stock to Nigerian Liquefied Natural Gas Limited (NLNG) that was used to repay part of the Modified Carry Agreement (MCA) loans, applicable royalty to DPR and tax to FIRS.

“The MCA loan was contracted specifically to fund the development of upstream oil and gas projects whose transactions are regularly reported to FAAC as part of the reconciliation of the revenues to NNPC, FIRS and DPR. The MCA and all other alternative funding arrangements are annually appropriated by the National Assembly and are therefore fully disclosed to FAAC on monthly basis.”