Nigerian House of Representatives Initiates Probe into $60 Billion Revenue Loss in NNPCL

The Nigerian House of Representatives has committed to investigating the reported loss of more than $60 billion in revenue allegedly caused by inflated cash calls within the Nigerian National Petroleum Company Limited (NNPCL) Joint Venture Agreements.

This decision stemmed from a motion presented by Chika Okafor during the plenary session. Okafor highlighted the NNPCL’s role in managing Joint Ventures with private oil companies, aiming for sustainable revenue generation and national economic development.

The NNPCL, representing the Federal Government and Federation, holds a 60% stake, while other partners possess 40%.

The Joint Operating Agreement outlines each partner’s responsibilities in these ventures. However, concerns were raised regarding bloated cash call costs managed by the NNPCL’s Upstream Investment Management Services (NUIMS), resulting in substantial estimated losses exceeding $60 billion over time.

This situation has led to revenue losses, fiscal deficits, and a significant debt profile. Through a comprehensive probe, the House aims to ensure transparency, probity, and value for money in NNPCL’s Joint Venture operations.

Additionally, the House has called for the immediate remittance of a five per cent users’ charge on petrol pump prices and diesel to the Federal Roads Maintenance Agency (FERMA) as stipulated by the Federal Roads Maintenance Agency (Amendment) Act, 2007.

Aderemi Oseni led the debate, emphasizing the significance of funding for road management and maintenance, stating that 40% of the users’ charges should accrue to FERMA according to the Act.