$20billion Still Missing From Crude Oil Sales

The Nigerian Senate Committee on Finance began its hearing on Tuesday investigating how crude oil monies are missing from the Nigerian federation account, with no reasonable action by the Presidency.

The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi told lawmakers that after reconciliation between the CBN, the Ministry of Finance and the Nigerian National Petroleum Corporation, the money that is about $20bn remains unaccounted for by the NNPC.

Governor Sanusi added the Nigerian National Petroleum Corporation had shipped Naira 10 trillions ($67billions) worth of crude oil in 2012-2013, and had only accounted for Naira 7 trillion ($47billion) worth. Out of the N10trillion ($67billion), the Federal Inland Revenue Service had confirmed receiving N2.6 trillion ($16billion) in taxes. 

The biggest contention according to sources is NNPC's claim that it received about N976billion ($6billion) from exporting crude on behalf of the Nigerian Petroleum Development Company (NPDC) Ltd., an NNPC subsidiary which is said to be farming oil blocks retrieved from Shell. 

Lawmakers are investigating the allegations made that NNPC officials are withholding large amounts from crude oil exports from the Federation account.

Sanusi contends that during the period 2012-2013, the NNPC sliced off 76% of crude oil proceeds - a total of N8 trillion ($48.9 billion).

The Ministry of Finance, Director of Budget, Bright Okogu, told lawmakers the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Central Nigerian Bank had reconciled the figures, and most of the missing monies had been spent on kerosene subsidies during the period.

The PPPRA claimed it bought kerosene for N150 per liter, and selling it for N40 per liter.

CBN's Governor Sanusi contradicted this account, telling lawmakers the late President, Umaru Yar-Adua had cancelled the kerosene subsidy in a presidential directive.

The NNPC was said to have handed over an oil block to Atlantic Energy Drilling Concept, a company said to be owned by Jide Omokore, a businessman from Kogi, with ties to President Jonathan and the Minister of Petroleum Resources, Allison-Madueke.

The NNPC exported N976billion ($6 billion) worth of crude oil through the NPDC on behalf of Atlantic. They are still unable to account for the proceeds.

According to another source, the NNPC hasn't been able to explain the deposit of dollar based oil sales of about Naira 488 billion ($3 billion), deposited in local currency.

According to sources, the practice is for NNPC officials to bring in dollars and sell them to banks and bureau de change operators, each transaction makes the Minister of Petroleum N9billion each time they bring in $3billion (N488billion) and sell to local banks directly.

They then turn around to deposit the Naira, at official rates, into the Federation account instead of depositing the proceeds directly into the dollar-based domiciliary account of the federal government in New York.

Sources say the Presidency is trying to influence the outcome of the hearing by covering the fraud.