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Pipeline vandalism: How NNPC spent N33bn on repairs in 13 months

Share Despite dwindling revenue and increasing debt profile, the Nigerian National Petroleum Corporation (NNPC) spent about N33 billion on repairs and maintenance of pipelines within a space of 13 months. The rate of pipeline vandalism has proven to be a recurrence, and as a result, part of the monthly remittances to the Federation Accounts is used for repairs and maintenance. Between January 2020 and January 2021, data from the Federal Account and Allocation Committee (FAAC) showed that in the first quarter of 2020, a total of N10.2 billion was expended on repairs, with a crude and product loss valued at N21.6 billion. In the second quarter of same year, the FAAC report also showed that despite the COVID-19 lock down which crippled economic activities across the country, N13.2 billion still went for repairs.

Federal agencies, revenue non-remittance and challenge of development

Share Official document from Office of the Auditor General of the Federation has revealed how a total sum of $759,387,755.10 was withdrawn from the Department of Petroleum Resources (DPR’s) Signature Bonus Account domiciled with JP Morgan Chase Bank. Signature bonus is a single, non-recoverable lump sum payment by the Licensee to Government upon the granting of a Petroleum Exploration Licence or Petroleum Production Licence. The latest OAuGF 2018 annual report indicated that the sum,  withdrawn in bits, was paid into different accounts in tranches between July 2014 and May 2015. Checks by Nigerian Tribune showed that an initial sum of $469,387,755.10 was withdrawn from the said account between April 10th and April 30th 2015 and paid to an account called, “CBN autonomous FEM account Garki, Abuja Nigeria,” rather than being  paid into the Federation Account.

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