Sanusi Lacks Understanding Of How Revenues From Crude Oil Are Remitted To Federation Account, Says NNPC GMD

BEVERLY HILLS, CA, December 13, (THEWILL) – The Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu Friday faulted the claim by the CBN Governor, Mr. Lamido Sanusi that the NNPC has failed to remit the sum of $49.8b from the sale of crude oil saying his claim is borne out of lack of understanding of how revenue from crude oil sale are remitted into the federation account.

The GMD in a press conference addressed at the Protea Hotel Asokoro Abuja, insisted that the NNPC is not in the business of withholding proceeds of crude oil sales due to the federation account or any other statutory remittances

The full text of the press conference below:

As you are well aware, it is not in our character to join issues or trade blames with other agencies of government. But considering the high level of publicity that the recent letter from the Governor of the Central Bank of Nigeria (CBN) to the President has generated, and the erroneous impression it has created among Nigerians. It has become necessary to set the records straight.

The statement credited to the CBN Governor that NNPC has failed to remit the sum of $49.8bn representing 76% of total national oil receipts is borne out of lack of understanding of how revenues from crude oil sales are remitted into the Federation Account. I will therefore explain the process and put the figures in perspective in order for you to understand and let the world know that NNPC is not in the business of withholding any crude oil receipts due the Federation Account or any other statutory remittances.

All NNPC crude oil liftings is made up of the following:

1. Equity Crude
2. Royalty Oil
3. Tax Oil
4. Volume for Third Party Financing, and
5. NPDC equity volume.

It is important to stress that remittances of proceeds from the above liftings are made according to statutory and production arrangements. Accordingly, proceeds from Equity crude is paid by NNPC into the Federation Account which is held by the Central Bank of Nigeria.

Proceeds from Royalty oil is paid to Department of Petroleum Resources, DPR, whose designated account is managed by the same CBN.

Similarly, the proceeds from Tax Oil or Petroleum Profit Tax lifted by NNPC is paid directly into the Federal Inland Revenue Service, (FIRS) account also managed by the CBN.

In the same vein, Third Party Finance and Trial Marketing volume are paid into designated Escrow accounts, while NPDC equity proceeds are remitted to NPDC account.

Ladies and Gentlemen, it should now be clear to all that NNPC is by statutory requirement is responsible for direct remittances of only one stream of liftings, namely Equity Crude.
Analysis of the figures is as follows;

The CBN letter claims that for the period 1st Jan 2012 to 31st July 2013, total National crude oil liftings was 1.287 billion barrels. Our records show that the total national crude lifting for the same period was actually higher at 1.330 billion barrels. Furthermore, total NNPC liftings during the same period was again higher at 618.552 million barrels as against the 594.024 million barrels stated by CBN.

We further wish to state that the proceeds from the total NNPC liftings comprising Federation Equity, Royalty Oil , Tax Oil, Volume for Third Party Finance, NPDC equity and volume for Trial Marketing Period amount to US$67.12bn as against the $65.33bn that the CBN stated. At this point, we wish to categorically state that all the proceeds amounting to $67.12bn have been remitted as statutorily required.

NNPC remitted its portion which is $18.48bn into the Federation Account being the total proceeds from Equity Crude and gas sales. This represents 27.5% of total proceeds of $67.12bn as against the 24% declared by CBN.

Common criminal

Can this crook be taken to the market square and hanged?

Welcome to Nigeria whr to join the government to make fortune

Greedy men

On the issue of US$49.8 billion or 76% of total national liftings and the alleged unremitted funds, we would like to clarify that this represents the proceeds from Royalty and Petroleum Profit Tax liftings. These, as I stated earlier, are remitted to the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) which are statutorily empowered to collect and remit same into the Federation Account.

For the benefits of those who may not be aware of the workings of the industry, it is imperative to state that the CBN, NNPC, FIRS and DPR meet regularly to reconcile liftings, sales and remittance of proceeds. Therefore, the data presented are jointly reconciled by CBN, NNPC, FIRS, and DPR.

The CBN further alleged that NNPC owes the Federal Government another N22bn in unpaid levies to the National Export Supervisory Scheme (NESS). It must also be noted that the levies under the NESS are paid to third party inspectors based on services rendered to the Federal Government. Payment to the NESS is update as per value of work done.

The current position is that NNPC has paid a total of $114.78 million from inception of NESS in 2009 up to October 2013 as against the total budget of $117.08 million for the same period. These payments have been reconciled with the CBN, who are again the custodians of the NESS account that is operated on a draw-down basis by the CBN.

Ladies and gentlemen, it is NNPC’s position always that in carrying out our statutory duties we will continue to maintain the highest level of transparency and accountability. Please be assured that NNPC remains available at all times to provide clarifications on these issues or any other matter relating to our responsibility to the Federation and the Nigerian people.

Thank you.

the fact that wailing zombies. and liepob defend every thief shows how cursed and unintelligent they are.... Jogogoro ran a govt by thieves for thieves

This man is a competent thief.

His analysis reminded me of one time when my football team in my local played a competition in which the team was given the sum of 30k. For coming second position Then the first major project in mind was to construct a standard metal goal post for our team. To my surprise the executives in charge of the project came out after the project was completed to give analysis of their expenditures low and behold it was difficult for me to believe my ears when they gave account saying that the 30k had been exhausted and also told us that their personal money amounting to the sum of 700 naira went into the project.

Note the quality of materials used clearly betrays their claims and this happened when things were not as costly as now 2010

They were like #3000 credit for calling

#1600 transport allowance (d distance no reach 3km o)

#2000 for feeding


And so on. Every one was shock cos they were even expecting balance from the 30k

respect80:
This man is a competent thief.

His analysis reminded me of one time when my football team in my local played a competitions in which the team was given the sum of 30k. For coming second position Then the first major project in mind was to construct a standard metal goal post for our team. To my surprise the executives in charge of the project came out after the project was completed to give analysis of their expenditures low and behold it was difficult for me to believe my ears when they gave account saying that the 30k had been exhausted and also told us that their personal money amounting to the sum of 700 naira went into the project.

Note the quality of materials used clearly betrays their claims and this happened when things were not as costly as now 2010

They were like #3000 credit for calling

#1600 transport allowance (d distance no reach 3km o)

#2000 for feeding


And so on. Every one was shock cos they were even expecting balance from the 30k

this is exactly the reason why we are in poo today, small group projects for our area, you go see the way people dey chop money, you go dey try reason if you are mad or they are the one that is insane.

That's some big fat kpogri mehn

Lol

But do we offend God uh? what is really our sin sef

OlujobaSamuel:
this is exactly the reason why we are in poo today, small group projects for our area, you go see the way people dey chop money, you go dey try reason if you are mad or they are the one that is insane.

People are just terrible cos even the devil who is said to be father of lies will shout JESUS! when he hear some people lie. They will give accurate analysis that will completely fit their lies. Imagine this man as at then claiming that the money was a bit more than what the FG thought you can't imagine how innocent and sincere people would have thought he is as at then.

Only God can help our course of existence in this country

I think it is high time i set up a crew and lets begin treasure hunting in Nigeria like the pirates of yore. There are lots of treasures burried in secret locations all over this country.

Who ever could have suspected that house plays host to an amount that could buy the entire neighbohood!!?

Dusting up my Hardleyb Chase novels to prep myself for the task ahead: i gotta got mine!

We need to get to a point, when corrupt practices in govt should attract the death penalty, thereby setting deterant to intending politicians that govrnc is service and not a medium to sipon public funds at the expense of the masses.