BREAKING: Heads To Roll, As N78 Billion Oil Money Gets Missing From Buhari’s Office

The Nigeria Extractive Industries Transparency Initiative, has announced that the Nigerian National Petroleum Corporation, NNPC, under-remitted N77.92 billion to the Federation Account, from domestic crude allocation in 2017.
It disclosed this in its latest report on Nigeria’s share in the sale of crude oil and gas produced in 2017. Recall, that President Buhari is the substantive Minister of Petroleum Resources, with the mandate to oversee the activities of the NNPC.

Key findings in the report showed that the NNPC deducted N297 billion from earnings from the Domestic Crude Allocation  as costs and losses.
This was broken down into N141.6 billion, for under-recovery of petroleum products, N25 billion, for crude and product losses, N130.4 billion, for pipelines repairs and maintenance.
It said: “The sum of N77.92 billion was under-remitted by NNPC to the Federation Account, from Domestic Crude Allocation in 2017.

“NNPC acknowledges the under-remittance, and states that there is an ongoing reconciliation to net off the N77.92 billion from the ‘established Federation indebtedness to the Corporation of N797 billion, arising from KPMG forensic audit of the Corporation, at the instance of the Federation.”
The report, showed that the Federation crude went to 29 destinations, in 2017.
The NEITI, noted that the total revenue from sale of Federation share of oil and gas for 2017, was $14.5 billion  to $13.18 billion or 90.8 percent from crude oil, and $1.32 billion, 9.1 percent from gas.
According to the NEITI, from the report, the total crude oil production for 2017, was 692 million barrels.

Out of this volume, the share that went to the Federation was 240.9 million barrels, representing 35 percent of the total crude oil production for the year 2017.

A trend analysis for the year under review, shows that the 2017 Federation share was four percent higher than the 231.6 million barrels in the same category for 2016, but was 19 percent lower than the 297.8 million barrels for 2015.

The report shows that while there was a slight improvement on the figure for 2016, (a year characterised by vandalism and sabotage of oil facilities), crude production for 2017 was about a fifth less than the 2015 level.

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