Senate Warns NNPC Against Spending Revenue Without Approval

The Senate has issued a warning to the Nigerian National Petroleum Corporation (NNPC) to desist from further deduction of its spending at source and instead await the approval of the Federation Accounts Allocation Committee (FAAC) or any other approving authority.

This was contained in a statement by the special assistant on press to the senate president, Ezrel Tabiowo.

According to the statement, such action contravenes Section 162(1) of the 1999 Constitution (as amended).

To prevent future infractions, the senate mandated the Federation Accounts Allocation Committee (FAAC) or any other approving authority to approve agreed percentage which should be allocated to NNPC monthly as an operational cost to ensure that their operations are not adversely affected.

The Senate also criticised the NNPC for not remitting N3.87 trillion revenue from domestic crude oil sales to the federation account from January to December 2015.

The statement noted that these formed part of the 59 recommendations adopted by the senate and contained in the committee’s report on public accounts on the latest annual report of the auditor-general for the federation.

The senate also faulted the outstanding collection from solid minerals (N12,137,140,361.58) not remitted to the federation account but kept in an account maintained by the Central Bank of Nigeria (CBN).

It said the act breached Section 162(1) of the 1999 Constitution as amended.

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