NNPC Has Legal Backing To Deduct Revenue At Source, Kyari Tells House

The Group Managing Director of the Nigerian National Petroleum
Corporation (NNPC), Malam Mele Kyari, yesterday justified not
remitting the entire funds the agency generates to the Federation
Account, saying that the corporation is backed by law to make
deductions of their running costs from source.

Kyari gave the justification when he appeared before the House
of Representatives Committee on Public Accounts.

The NNPC GMD appeared before the committee to answer questions
on their financial operations, following the query from the office
of the Auditor General of the Federation over dwindling government
revenue from 2014 till 2020.

The NNPC was queried on the deduction of the sum of N865 billion
from N2.4 trillion it agency generated in 2015, which the Auditor
General, said was in violation of Section 162 of the
constitution.

The agency was also queried on the non-remittance of N3.8
trillion of domestic crude oil sales; the non-collection of gas
receipts for some months in the year; and the issue of refund of
N450 billion among others.

Addressing the lawmakers, Kyari made reference to the NNPC Act
and a judgment of the Supreme Court as where they drew their
authority from.

He also claimed that the corporation has the approval of the
Attorney General of the Federation.

He said, ‘’What we do is backed by the provisions of the law.
First the NNPC Act is very clear that we should submit revenues net
of our cost. There is also an informed decision of the Supreme
Court and also the Attorney General of the Federation, that that
position is correct and supported by the provisions of the
law.’’

Responding, the Committee Chairman, Hon. Wole Oke, said the NNPC
is an agency owned by Nigerians which operates at profit, adding
that should not spend what it generates.

He said it was understandable that some of the operations may be
emergency in nature, adding however that the country is not a
Banana Republic.

The Group Managing Director of the Nigerian National Petroleum
Corporation (NNPC), Malam Mele Kyari, yesterday justified not
remitting the entire funds the agency generates to the Federation
Account, saying that the corporation is backed by law to make
deductions of their running costs from source.

Kyari gave the justification when he appeared before the House
of Representatives Committee on Public Accounts.

The NNPC GMD appeared before the committee to answer questions
on their financial operations, following the query from the office
of the Auditor General of the Federation over dwindling government
revenue from 2014 till 2020.

The NNPC was queried on the deduction of the sum of N865 billion
from N2.4 trillion it agency generated in 2015, which the Auditor
General, said was in violation of Section 162 of the
constitution.

The agency was also queried on the non-remittance of N3.8
trillion of domestic crude oil sales; the non-collection of gas
receipts for some months in the year; and the issue of refund of
N450 billion among others.

Addressing the lawmakers, Kyari made reference to the NNPC Act
and a judgment of the Supreme Court as where they drew their
authority from.

He also claimed that the corporation has the approval of the
Attorney General of the Federation.

He said, ‘’What we do is backed by the provisions of the law.
First the NNPC Act is very clear that we should submit revenues net
of our cost. There is also an informed decision of the Supreme
Court and also the Attorney General of the Federation, that that
position is correct and supported by the provisions of the
law.’’

Responding, the Committee Chairman, Hon. Wole Oke, said the NNPC
is an agency owned by Nigerians which operates at profit, adding
that should not spend what it generates.

He said it was understandable that some of the operations may be
emergency in nature, adding however that the country is not a
Banana Republic.