Reps probe loss of N7.6tr crude oil revenue to international oil firm

The House of Representatives on Thursday resolved to probe the loss of $21 billion (about N7.6trillion) crude oil revenue to oil multinationals operating in the country following the persistent fuel scarcity in parts of the country.

The investigation will be carried out by an ad hoc committee to be constituted by Speaker, Hon Yakubu Dogara.
The resolution followed the adoption of the motion moved under matter of urgent public importance by Hon Sunday Marshall Katung.

When constituted, the committee shall investigate the operations of the Production Sharing Contract (PSC) between the oil multinationals and the Nigerian National Petroleum Corporation (NNPC).

Also, the committee will require the Minister of Petroleum Resources, Ibe Kachikwu to provide details of all financial transactions between the NNPC and the oil companies during the period when the losses were incured.

The committee which was given six weeks to report its findings to the House, is also charged with the review of the production sharing contract and the joint operation agreement and other relevant agreements with a view to regularizing all the anomalies that have led to the loss of revenue.

Leading debate on the motion, Hon Katung, who represents Zango-Kataf/Jaba Federal Constituency of Kaduna state, pointed out that the Minister of Petroleum, Dr Ibe Kachikwu had while briefing newsmen last year December, revealed that the nation lost about $21 billion (N7.6 trillion) to foreign oil firms operating in the country due to non-implementation of the production sharing contract.

The lawmaker said that the minister had also said that the nation losses this colossal sum because the federal government failed to act, adding that “in 2013, although there was a notice to oil companies that government would take steps to correct this anomaly, government did not carry it through in terms of going to the federal executive council to get approval.”

He lamented that these acts of negligence, omission, and incompetence, if not outright collusion and conspiracy with a view, possibly, to corruption have been perpetrated over such a long period of time when the nation has had well paid legal and technical expert in place.

Katung lamented that this development is a sad reminder of how the wealth of the nation ends up in foreign land while her economy and the lot of her citizens continue to dwindle “as is evidenced by, amongst others, her economic recession and the pervasive and acute poverty in the country.”

He called on the National Assembly to rescue the nation in the interest of the common man and take adequate measures to bring the sorry situation to a halt, adding that “these reckless incidents have resulted in the massive depletion of the nation’s resources and its revenue.”

Henry Omunu, Abuja