The Senate on Wednesday agreed to set up a nine-man ad-hoc committee to consider the statutory report of the Nigerian Extractive Industry Transparency Initiative (NEITI).
The decision of the Senate followed a session with the Executive Secretary of NEITI, Mr. Waziri Adio in Abuja, whom the upper chamber had invited Adio to throw more light on the 2013 audit report of NEITI he submitted to it.
Adio in his presentation said transparency agency let out the information to push for reforms in the oil sector.
“We publish audit report every year because we have a mandate to promote accountability and transparency in the management of resources from oil, gas and mining.
“I have 10 major points from oil and gas audit and a few on the solid minerals sector. In 2013 the country produced 800.3 million barrels and out of that the country made $58.07 bn and that represents an 8 percent reduction on the $62.9 bn that the country made in 2012.
“The second issue is that there are some monies that were withheld, lost or underpaid for different reasons.
“These monies are in three tranches. The first is in the category of the unremitted, and the unremitted amounted to $3.8 bn and N358 million”, he stated.
He added, “Under the category of the under-accessed the country lost $599.8 million. When we look at the unremitted, $1.7billion is still being owed the federation for OMLS.
“Also, $1.29 billion from the NLNG dividends and N351 billion from unpaid domestic crude debt, N2.17 billion from cash calls refunds”.
He told the Senate that all the funds were expected to be lodged in federation account, but were yet to be lodged at press time.
“ Those are the monies we have established that should have been paid to the federation and were not paid.
“The second category of losses by NNPC and its subsidiaries. Out of the $5.9 billion that we lost $4.7 billion was lost to theft and vandalism.
“20bn naira was lost because the NNPC did not observe the 90 days credit grace and when you look at the time value of money, if you calculate at 12 percent interest the country lost 20 bn naira.
“Some of the issues in the report. The first is about the assets divested by NNPC to NPDC.NNPC between 2010 and 2011 divested eight assets that belong to the federation to its upstream subsidiary NPDC. So NNPC divested 55 percent of the shares being held on behalf of the federation to the NPDC.
According to Adio, though the country is aware of its oil and gas export, “we cannot say scientifically what we produce.
He blamed this on lack of metering in the oil and gas sector.
He noted that in 2013 the country produced 800.3 million barrels and out of which the country made $58.07 billion which represented eight per cent reduction on the $62.9 billion the country made in 2012.
Senate President, Abubaka Bukola Saraki, while constituting the committee, said, said based on the fact that the report cut across many standing committees and in view of the enormity issues involved, the consensus is that the Senate should set up ad hoc committee with the responsibility of addressing all the issues.
He added that the panel should also look at remedial measures and sanctions where necessary, “and of course, more importantly any relevant legislative action that would be required to block all forms of leakages.”
Saraki, named Chairman, Senate Committee on Petroleum (Downstream) Senator Jibrin Barau as chairman of the ad-hoc committee.
Other members of the committee included Chairman, Senate Committee on Public Account Senator Andy Ubah, Chairman Senate Committee on Petroleum (Upstream) Tayo Alasoadura, Chairman Senate Committee on Gas, Senator Bassey Akpan, Chairman Anti-Corruption, Senator Chukwuka Utazi, Chairman, Senate Committee on Finance, Senator John Owan Enoh, Senators Kabiru Marafa, Bukka Mustapha, and Solomon Adeola.
The Committee was given four weeks to conclude its assignment and report back to the Senate in plenary.
He noted that there are some monies that were withheld, lost or underpaid for different reasons.
He said: “These monies are in three tranches. The first is in the category of the unremitted, and the unremitted amounted to $3.8 billion and N358 million.
