Central Bank of Nigeria (CBN) Governor, Mallam Sanusi Lamido Sanusi, has revealed that the Nigerian National Petroleum Corporation (NNPC) is yet to account for the sum of $20 billion which he said should accrue to the Federation Account.

Sanusi made the revelation in Abuja today at the resumed hearing on the alleged unremitted $49.8 billion oil money by the Senate Committee on Finance. According to Sanusi, out of the total value of $67 billion being the amount of crude oil shipped by NNPC between January 2012 and July 2013, only $47 billion was remitted to the Federation Account.

Accusing NNPC of trying to mislead Nigerians, Sanusi in the executive summary of his written memo said: “I am therefore compelled to present to this committee detailed evidence that NNPC has in violation of the law and the constitution been diverting money from the Federation Account, and involving itself in activities that warrant full investigation for more serious violations of the law.”

He further accused NNPC of serious infractions in the handling of kerosene subsidy. He argued that “based on National Bureau of Statistics (NBS) data, kerosene is not a subsidised product, and therefore the so-called subsidy is rent generated for the benefit of those in kerosene business.”

Revealing the Federation Account was made to lose $100 million every month to the subsidy racket, he urged the committee to insist that NNPC provide evidence of presidential authorisation to buy kerosene at N150 per litre and to sell same at N40 per litre, whereas the product sells at between N170 – N220 per litre in the open market.

On the NNPC’s claims of paying subsidy on behalf of Government, he said the claims are not credible and indeed contradicted by the fact the NNPC had consistently rendered returns to the Federation Account Allocation Committee (FAAC) indicating that it made no deductions for subsidy.

The CBN Governor identified NNPC’s unverified claims for subsidy and unilateral deductions from the Federation Account as a major source of revenues from the system and urged the Committee to order a thorough independent investigation into the activities of NNPC.

•Photo shows Sanusi testifying at the Senate hearing . . . today in Abuja.

Update news