The Governor Of The Central Bank Of Nigeria Insists $20 billion Still Missing From Crude Sales

CBN Governor, Sanusi Lamido Sanusi

The Nigerian Senate Committee on Finance began its hearing today investigating how crude oil sale monies are missing from the Nigerian federation account.  

Lawmakers are investigating allegations made by the Governor of the Central Bank of Nigeria (CBN), Mr. Sanusi, that NNPC officials are withholding large amounts of money from crude oil exports from the Federation account.  

Sanusi contends that during the period 2012-2013, the NNPC sliced off 76% of crude oil proceeds - a total of N8 trillion ($48.9 billion).

The Governor of the Central Bank of Nigeria (CBN)    Sanusi told lawmakers today after reconciliations between the CBN, the Ministry of Finance and the Nigerian National Petroleum Corporation, the money still remains unaccounted for by the NNPC.

The story last year over a letter sent by Mr. Sanusi to President Goodluck Jonathan about the missing monies.

The Ministry of Finance, Director of Budget, Bright Okogu, told lawmakers the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Central Nigerian Bank had reconciled the figures, and most of the missing monies had been spent on kerosene subsidies during the period.  

The PPPRA claimed it bought kerosene for N150 (92 cents ) per liter, and selling it for N40 (30 cents).

CBN's Governor Sanusi contradicted this account telling lawmakers the late President, Umaru Yar-adua had cancelled the kerosene subsidy in a presidential directive.  

This revelation left many questioning whether Okogu had properly investigated the alleged theft by the NNPC and the Minister of Petroleum Resources.

Governor Sanusi added the Nigerian National Petroleum Corporation had shipped Naira 10 trillions ($67 billions) worth of crude oil in 2012-2013, and had only accounted for Naira 7 trillion ($47 billion) worth.  Out of the N 10 trillion ($67 billion), the Federal Inland Revenue Service had confirmed receiving N2.6 trillion ($16 billion) in taxes.

The biggest contention according to sources is NNPC's claim it received N976 billion ($6 billion) from exporting crude on behalf of the Nigerian Petroleum Development Company (NPDC) Ltd., an NNPC subsidiary which is said to be farming oil blocks retrieved from Shell.  

The NNPC handed over the oil block to Atlantic Energy Drilling Concept Limited, a company said to be owned by Jide Omokore, a businessman from Kogi, with ties to President Jonathan and the Minister of Petroleum Resources, Allison-Madueke.  

The NNPC exported  N 976 billion ($6 billion) worth of crude oil through the NPDC on behalf of Atlantic.  They are still unable to account for the proceeds.

According to another source, the NNPC hasn't been able to explain the deposit of dollar based oil sales of about Naira 488 billion ($3 billion), deposited in local currency.  

According to sources, the practice is for NNPC officials to bring in dollars and sell them to banks and bureau de change operators, each transaction makes the Minister of Petroleum N9 billion each time they bring in Naira 488 billion ($3billion) and sell to local banks directly.

They then turn around and deposit the Naira, at official rates, into the Federation account instead of depositing the proceeds directly into the dollar-based domiciliary account of the federal government in New York.

Sources at the Senate hearing confirmed, the Presidency is trying to influence the outcome of the hearing.  

Two key ministers - the Minister of Petroleum Resources, Diezani Allison-Madueke and the Minister of Finance, Ngozi Okonjo-Iweala - both at the center of the scandal - did not show up for the hearing claiming to be ill.   

Another source said both ministers requested a closed committee hearing but were denied when lawmakers said the hearings should be public.

Today's hearing, chaired by former Kano State Governor, Senator Ahmed Makarfi, is adjourned until next Thursday.