The House of Representatives Committee on Finance has raised concerns over the Nigerian National Petroleum Corporation Limited’s (NNPCL) failure to remit over $278 million.
Dr Mele Kyari, the Group Managing Director of NNPC, on Tuesday, faced questioning from the committee regarding the issue and the overall management of the oil industry.
Chairman of the committee, Hon. James Faleke, expressed concern about the lack of transparency in oil industry management, alleging that asset transfers are reducing the amount of oil revenue accruing to the Federation.
The committee received information from the Federal Inland Revenue Service (FIRS) indicating a total cost figure of $48.71 per barrel for computing hydrocarbon and petroleum profits tax.
With crude oil currently selling at around $80 per barrel, Nigeria’s high production costs have raised concerns, making it one of the highest in the world.
The committee also sought clarity on the status of the $3.3 billion forward contract executed by NNPC.
Since the start of the 10th Assembly, the committee has closely reviewed figures from the oil sector.
Responding, Dr Kyari provided insights into the security challenges facing NNPC’s operations.
He mentioned collaborative efforts with NIMASA, the Nigerian Navy, and other stakeholders to combat oil theft.
Kyari disclosed the existence of over 5,000 illegal connections and the destruction of over 6,000 illegal refineries, posing significant risks to production.
The GMD stressed that security risks have hindered production optimization and discouraged investment in the industry.
