The Nigerian National Petroleum Corporation has said that it spent N966 billion on pipeline repair between 2010 and 2015.
NNPC disclosed this in a written response to the query by the Auditor-General for the Federation.
The Auditor-General had, in a 2016 report being considered by the Senate Public Accounts Committee, accused the NNPC of not remitting N4 trillion into Federation Account.
The query reads , “It was observed from the examination of NNPC report to Technical Sub-Committee of Federation Account Allocation Committee meeting held in December 2016 that a cumulative total of N4 trillion was unremitted to the Federation Account by NNPC as at 31st
December 2016.”
But the corporation, in written response to the query, claimed that the unremitted N4 trillion was arrived at without taking cognizance of the subsidy and pipeline repairs and management associated with domestic crude oil transaction.
It said the N4 trillion was spent on petroleum subsidy from 2010 to 2015, including N966 billion in pipeline repairs.
It said, “subsidy approved and certified by PPPRA from 2010-2015 stood at N4 trillion. Also in 2016, OMS under recovery stood at N28.6 billion, which brings the total unrecognized subsidy/PMS under recovery to N4 trillion.
“Aside the above, pipeline repairs and products losses so incurred stood at N966 billion for the same period.”
The representative of NNPC is expected to appear before the Senate Committee, chaired by Senator Matthew Urhoghide (PDP, Edo) this week to give clarification on the issue raised in the Auditor General report over non-remittance of N4 trillion into federation account.