Daily Trust
3 October 2011
The Nigerian National Petroleum Corporation lifted crude oil beyond the levels allocated to it for domestic consumption, thereby short changing the Federation Account by about N133 billion in six months, documents from the Federation Account Allocation Committee have shown.
NNPC lifted an extra 7,239,039 barrels of crude oil on top of the 80,545,000 barrels it was supposed to lift for refining and sale to the domestic market between January and June, the documents obtained by Daily Trust in Abuja
The excess oil taken amounted to about $885.7 million (equivalent N133 billion) based on the average prices of crude oil during each of the six months.
The corporation is entitled to lift 445,000 barrels of crude oil per day only, meant to be refined and sold at home. Because the local refineries are not working to capacity, NNPC sells part of this allocation abroad and then imports refined products to meet the domestic consumption needs.
But a report prepared by the FAAC ‘post-mortem’ sub-committee ahead of a fund-sharing meeting two weeks ago showed that during the first six months of the year, except in January, NNPC lifted more than what it should and never remitted the balance to the Federation Account as required by law.
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