The House of Representatives yesterday began investigation into the alleged $1.56 billion loan borrowed by the Nigerian National Petroleum Corporation (NNPC) late last year.
At the commencement of public hearing by the Joint House Committee on Petroleum Up and Downstream, Justice, Aids, loan and debts, Speaker Aminu Tambuwal and Minister of Petroleum Resources Mrs. Diezani Alison-Madueke both disagreed over the loan.
While declaring the probe open, Tambuwal represented by House Chief Whip, Rep. Isiaka Mohammed Bawa (PDP, Taraba), said that “the issue before us today for consideration, the proposed $1.56 billion loan by the NNPC is a very important one; its importance is predicated on the fact that the proposed loan was neither captured in the 2013-2015 Medium Term Framework, nor in the 2013 budget. As a parliament, we believe that if we continue on the path of truth, history shall vindicate us.”
However, Mrs. Alison-Madueke, denied the existence of any loan by the NNPC saying what existed was a “forward sales agreement between the NNPC and its trading partners.”
The minister’s stance angered the legislators leading to heated arguments with many MPs describing it as “unacceptable.”
For his part, the Group Managing Director of the NNPC, Mr. Andrew Yakubu said the forward sales agreement was “to enable NNPC honour its obligations while addressing the risk of sovereign default and potential banking crisis that could ensue.”
Yabubu disclosed that the corporation had accumulated various legacy liabilities which were being settled periodically from internal resources.
He said “the non-reimbursement by federal government of the Petroleum Products Price Differential to NNPC has gradually led to accumulated and unpaid petroleum products invoices of about US $3.5bn.”

WAOH! Interesting development.
First to comment.

WAOH! Interesting development.
First and second to comment.

Who Jah Bless no Man ban