The Nigeria Extractive Industries Transparency Initiative (NEITI) has advised the Federal Government to probe why a whopping $5.5billion and N72.4billion were not remiitted to the government by the Nigeria Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), The Nation reports.
It also wants the government to re-valuate the transfer of the federation oil assets by the NNPC to NPDC. Its Executive Secretary, Mr. Waziri Adio, while answering questions from reporters on the highlights of the released NEITI Policy Brief entitled “unremitted funds, oil sector reforms and economic recovery” gave the advice. Mr. Adio stated that the review has become imperative in view of the under-valuation, non–payment for the assets and the inability of the NPDC to either make returns on the investments or be accountable to the federation over its management of Nigeria’s oil assets in its custody.
NEITI also expressed concerns over NPDC’s technical expertise and financial capability to manage Nigeria’s oil assets. “The lack of technical know-how has been evident since the mid-2000s when the NPDC started engaging in service contracts with international oil companies. Also, NPDC’s lack of finances has been evident since the beginning of the 2010s, when the company resorted to Strategic Alliance Agreements (SAAs) with indigenous oil companies to carry out production on the fields in its possession,” it lamented.