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NNPC StillUntamed Under Buhari- UK Group

NNPC-logo1Despite the fact that the President of Nigeria, Muhammadu Buhari appointed himself as the minister of petroleum resources, there has been a report from United Kingdom (UK) reveals that the Nigeria National Petroleum Corporation (NNPC) remains unbridled.
A UK-based natural resources accountability group of the Natural Resource Governance Institute (NRGI) made this affirmation in a report titled “NNPC Still Holds the Blank Check” which is a follow up to last year report based on the activities of the corporation by the group.
NGRI, in the report pointed that the NNPC, under the watch of the President, has continued to withhold billions of dollars in oil revenues from the treasury.
It said the corporation still holds on to oil revenues without effective rules or oversight, adding that despite Buhari’s personal resolve to curb graft in Nigeria’s oil industry, the corporation in the second half of 2015 made up to $6.3 billion from sales of export crude, domestic crude and oil from its subsidiary the Nigerian Petroleum Development Company (NPDC), out of which only $2.1 billion was entered into the Federation Account.
According to it, the NNPC retained 66 per cent of sales proceeds from these three types of transactions. This, it noted, was 12 per cent higher than what it retained between 2013 and 2014.
It said that while the NNPC’s withholding covers known costs, notably its share of the joint venture expenditure, the corporation has however not fully explained others, especially revenues retained from NPDC and domestic crude sales.
NNPC’s spending on this scale, it said, raises questions about its adherence to fiscal responsibility, especially at a time when public finances are stretched and the government is looking for monies to fund its budget.
The report advised the government to establish a clear, legally enforceable rule governing what revenues NNPC could keep and how they can be spent now that it is undergoing some sorts of reforms.
Otherwise, it said oil sector corruption and waste could return to their prior devastating levels once Buhari leaves or crude oil prices rise again.

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