NNPC fails to explain N1.35tn 2011 budget discrepancies

The Nigerian National Petroleum Corporation wobbled over queries raised on the implementation of its 2011 budget, failing to give appropriate answers on how it managed the $8.722bn (about N1.35tn) approved for it by the National Assembly last year.

Appearing before the National Assembly’s Joint Committee on Petroleum (Upstream), NNPC officials were unable to reconcile documents showing that it received $8.722bn and another document that showed a figure of $9.387bn for the same year.

Although the Group Managing Director, NNPC, Mr. Austen Oniwon, was absent, he was represented by the Group General Manager, National Petroleum Investment Management Services, Mr. Morrison Fiddi.

Explaining the implementation of the corporation’s budget in 2011, Fiddi said it recorded 125 per cent performance on behalf of the government in its joint venture activities.

He said although NNPC requested for $10.553bn in its 2011 budget proposal, only $8.722bn was approved for the year.

Fiddi said, “For 2011, we requested for $10.55bn but $8.722bn was approved. In totality, the performance for 2011 was 88 per cent. The security issue in the year affected our operations in the Niger Delta. The security situation was very high but we are improving, and hoping that 2012 will be good.

“Also, pipeline vandalism affected our target; we were able to achieve 88 per cent out of the 100 per cent we were expected to achieve. Hopefully, all these will be addressed in 2012.”

However, Fiddi’s presentation before the committee showed that $8.262 was the actual performance as against $8.722bn that was approved as the corporation’s budget for the year.

This was pointed out by lawmakers, who argued that given the figures on paper, NNPC could not have achieved 125 per cent budget implementation.

Also, the Chairman, House of Representatives Committee on Petroleum (Upstream), Mr. Ajibola Muraino, queried another figure of $9.387bn as the approved NNPC budget for 2011, whereas the corporation had said it got $8.722bn.

The Chairman of the joint committee, Senator Emmanuel Paulker, repeatedly asked Fiddi to explain how the corporation came up with the $9.387 listed on page 17 of the document presented to the committee.

Although Fiddi took time out to consult with members of his team on the matter, he could not come up with the needed explanations.

Source