The Nigerian National Petroleum Corporation (NNPC) today came under fire over the voodoo accounting methodology it is seeking to use to explain away the $10.8 billion missing oil revenue.

The Conference of Nigerian Political Parties (CNPP) in a statement issued by its National Publicity Secretary, Osita Okechukwu, frowned at what it called “the unprofessional creative accounting method” adopted by NNPC in its desperation to convince Nigerians that the whopping sum is not missing.

“We regret that each time the pervasive leakage of funds and monumental corruption in the Corporation comes under public scrutiny NNPC recklessly adopts the unprofessional creative accounting method,” CNPP said, adding:

“We recall how painfully and grudgingly Governor of Central Bank, Sanusi Lamido Sanusi, wrote our dear president and raised the issue of missing $49.8 billion from crude oil sales between January 2012 to July 2013.

“A Fire-Brigade reconciliation approach among the relevant agencies, NNPC, CBN, and Ministry of Finance ensued after several days in which the Minister of Finance, Dr Ngozi Okonjo-Iweala concluded that, ‘According to NNPC’s records, the total revenue of $67.12 billion was comprised of revenues which directly accrued to NNPC (for the Federation Account) of $14 billion, and additional revenues lifted by NNPC on behalf of other parties…….$10.8 billion (N1.6 trillion) shortfall of domestic crude oil receipts due to Federation Account was not remitted’.

“On Friday January 10, the Group Managing Director of NNPC, Engr. Andrew Yakubu in a press conference said, ‘We like to state once again that contrary to what is being speculated, the $10.8 billion which is currently the subject of interagency reconciliation exercise is not missing …….the sum in question has been expenditure incurred as art of statutory responsibilities which the NNPC as the National Oil Company executes on behalf of the Federal government and by extension the entire people of Nigeria’.

“The creative accounting went thus;- $8.49bn unpaid fuel subsidy claims, $1.22bn pipeline management, $0.72 crude oil losses and $.7bn cost of holding reserve stock.

“We disagree with the so called fuel subsidy payment of $8.49bn by the NNPC; for the National Assembly in facilitating the art of statutory responsibilities which the NNPC executes on behalf of the entire people of Nigeria first budgeted N888bn in 2012 and later supplementary budget was raised and NNPC was paid over N1 trillion for fuel subsidy in 2012.

“In sum, CNPP challenges President Goodluck Jonathan to set up an independent inquiry to unravel the blatant scam in the NNPC creative accounting; for the $8.49bn could have been used to build two mega refineries and stop fuel products importation.”

Update news