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Wednesday, May 12

Angry Buhari Summons Kachikwu over NNPC’s Poor Revenue Earnings

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Nigerian President, Muhammadu Buhari, is unimpressed by the poor revenue contribution of the Nigerian National Petroleum Corporation (NNPC) to the National treasury, following the quarterly report of the corporation.

The report indicated that it has in two months recorded zero accounts allocation to the Federation Account.

Buhari, who doubles as the substantive Petroleum Minister, was said to have summoned his Minister of State, Ibe Kachikwu and the key management staff of NNPC to be personally convinced that there was no act of sabotage against his administration.

Ripples Nigeria reliable gathered that the financial records of the establishment, regarded as the cash cow of Nigeria, has been showing that it utilized almost all its income to service debts, overhead costs and other operational ventures since the renewal of hostilities in the Niger Delta region since September 2016.

To that effect, it failed to declare any profit for September and October 2016 thereby contributing close to nothing to government purse during the period.

A Presidency source said what has caused the anger of Buhari in the development was the fact that NNPC has not indicated any programme for next year’s budget funding, which targets 85 per cent revenue from the oil sector.

But a spokesman of the corporation said there is no allegation of mismanagement of funds despite the fact that there is a reduced profit recording.

He confirmed that “unlike in the past few years, NNPC could not sustain the same profit that it was posting because of militants’ activities this year. But we are optimistic that things are going to normlise soon.”

A report quoted an audit firm as saying that the NNPC, as a group reduced its total losses from N17.18bn in September to N16.85bn in October, while its deficit for the 10-month period beginning from January 2016 stood at N166.4bn.

It stated that NNPC’s performances were being dragged down by a series of force majeure declared by the SPDC as a result of the vandalised 48-inch Forcados export line.

In their review of the corporation’s performance, analysts at FBN Capital Research stated that the NNPC results were again hamstrung by sabotage.

They highlighted the fact that the corporation’s accounts for October showed a group operating deficit of N16.9bn, which was slightly lower than the N17.2bn recorded in the previous month.

Experts added that until government finds solutions to the Niger Delta crisis, its dream of generating enough revenue through the oil sector will be a mirage.

 

RIPPLES NIGERIA

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