House of Reps probe N6trn, $5.5bn non-remittances by NPDC

- Petroleum Development Company (NPDC) is under investigation by the House of Reps over alleged non-remittance of over N6 trillion

- NPDC managing director, Mr Yusuf Matachi confirmed that the company was owing $1.7 billion

- Nwokolo, chairman, House Committee on Petroleum Resources (Upstream) said the exercise was in line with the provisions of the 1999 constitution

The House of Representatives Committee on Petroleum Resources, Upstream, has started hearing into the alleged non-remittance of over N6 trillion annual payment and $5.5 billion into the Federation Account by Nigerian Petroleum Development Company, NPDC.

NPDC managing director, Mr Yusuf Matachi confirmed that the company was owing $1.7 billion.

The MD however stated that the company had signed agreement with NNPC, and Department of Petroleum Resources, DPR, on payment of $10 million on monthly basis.

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Contrary to his presentation on the $10 million monthly repayment, the documents submitted by NPDC to the committee showed that: “DPR granted NPDC a payment of $50 million monthly payment in January 2017 to defray outstanding debt but the plan was not adhered to,” Vanguard reports.

On the other hand, the document stated that “in October 2017, NPDC applied to pay $10 million monthly to clear part of the outstanding debt and it was approved by DPR. However no payment has been made”.

Victor Nwokolo, chairman, House Committee on Petroleum Resources (Upstream), in his welcome address said the exercise was in line with the provisions of the 1999 constitution.

He said the investigative hearing was not aimed at witch-hunting any organisation or individual.

He said the committee’s mandate was to “inquire into the alleged infraction in the operations and activities of NPDC. The second issue is to examine the persisting lack of capacity, leading to revenue losses to the Federal Republic of Nigeria.”

Nwokolo maintained that Nigeria “cannot afford losses in any of our investments, whenever there are wastages and/or leakages, as representatives of the people, it is our duty to put an end to it”.

Meanwhile, NAIJ.com had reported that the affected firms include Aiteo Energy, Neconde Energy, Frontier Energy and seven indigenous oil companies.

The reps berated the company for not willing to remit the fund to the federal government and gave them an ultimatum of two weeks to get the necessary things done.

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The reps has also invited managing director of the Nigerian Petroleum Development Company (NPDC) to appear before the committee in Abuja on December 19 over Operating Mining Lease (OML) 119, to explain why the block was producing 5,000 barrels in spite of its capacity to deliver beyond.

Agom said they failed to remit $10 million accrued debt in line with the agreement it reached with the Department of Petroleum Resources (DPR).

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Source: Naija.ng