NNPC spent N443bn on subsidy without budgetary provision – Senate
NEWS DIGEST – The Senate Committee on Public Accounts, on Wednesday, uncovered how the Nigerian National Petroleum Corporation (NNPC) spent N443 billion on oil subsidy in 2016 without budgetary provision.
The panel has, therefore, summoned the leadership of the oil firm to brief it on the expenditure.
The committee’s chairman, Senator Matthew Urhoghide, issued the summon on Wednesday when the panel considered a 2016 report by the Auditor-General for the Federation.
“During the examination of subsidy records provided by Federation Account Allocation Committee (FAAC), it was observed that total subsidy paid during the year 2016 was N443,940,559,974.80,” the audit report said.
The breakdown of the fund showed that N403.3 billion was paid to oil marketers, while interest & foreign exchange differential gulped N40.6 billion, totalling N443.9 billion.
The fund, according to the report, was spent in 2016 without budgetary provision and was deducted at source.
“This reflects continuing weaknesses in the budgeting process adopted by the Federal Government,” it added.
Responding to the audit report, the Accountant General of the Federation, Ahmed Idris, told the committee that the NNPC would be in a better position to explain the extra-budgetary spending.
The Chairman of the committee, therefore, summoned the NNPC Group Managing Director, Melee Kyari, to give an explanation on the expenditure.