Abuja – The House of Representatives yesterday agreed to embark on an investigation of alleged malpractices by the Nigerian National Petroleum Cooperation (NNPC) on crude oil Swap contracts to ensure that the nation’s extractive industries are transparently managed in accordance with global best practices, so as to enhance Nigeria’s revenue and economic fortunes.
Michael Enyong who raised the motion on the floor of the House entitled “Urgent Need For a Forensic Investigation of the Contract known as Refined Product Exchange Agreement or Swap Contract” noted that the revenue of the country has plummeted due to leakages in the accounting system and mismanagement of the economy.
Enyong explained that the Nigerian Extractive Industries Transparency Initiative (NEITI) in its 2011 and 2012 reports had ascertained that there was revenue loss to the tune of $8 billion owing to discrepancies between the value of the crude oil given out and the refined products delivered.
He equally informed his colleagues in the green chambers that in 2011 there was a shortfall of 500, 075, 32 litres of refined product under the listed companies; Transfigura 173, 786, 600 litres, Vitol 654, 440 litres, Taleveras 152, 308, 878 litres, Aiteo Ltd 193, 045, 590 litres and Ontario Oil & Gas 180, 278, 732 litres.
“There is the need to ensure Transparency and accountability by the NNPC in the management of revenue accruing to the nation from crude oil, particularly in the prevailing circumstances where major buyer of Nigeria’s crude oil, the US has discovered alternative sources, “the law maker said.
He further said that the concerns raised in the motion are in tandem with the anti corruption stance with 3 arms of government, particularly President Muhammadu Buhari.
According to him, the investigation is important because due diligence in the management of the country’s revenue will rekindle hope in Nigeria’s creditors about its fiscal capacity to manage it’s debts and still have resources with which to address it’s macro – economic concerns.
Before the motion was taken on the floor the House, there were attempts to scuttle the motion by some members who felt that the motion should be suspended because there was no in depth information on the matter.
Immediate past Deputy leader of the House, Leo Ogor standing on rule 50 said that he would want the motion suspended because it is a new motion which was not placed in the notice paper.
On the contrary, Femi Gbajabiamila insisted that because of the importance of the motion, the relevant standing rules of the House can be suspended to take the motion.
The Speaker, Yakubu Dogara in his ruling and after putting the matter said, “we should bear in mind that it was only yesterday (Tuesday) that the committee of rules and business was instituted” adding that the committee should make sure that the rules of the House is followed.
Gbajabiamila who further raised an observation on amending of motions and bills was based on Order 8, rule 52 was interrupted by an outburst by Ogor who rose to his feet angrily.
Ogor apologised when he was finally recognised by the Speaker saying that he did “not want the parliament to be turned to something else”.
Yakubu Dogara, House of Representatives Speaker
