NPDC worst debtor in oil and gas – DPR

Daily Trust - - BUSINESS - By Musa Ab­dul­lahi Kr­ishi

The Depart­ment of Petroleum Re­sources (DPR) yes­ter­day said the Na­tional Petroleum De­vel­op­ment Com­pany (NPDC), a sub­sidiary of the Nige­ria Na­tional Petroleum Cor­po­ra­tion (NNPC), is the worst debtor in the oil and gas sec­tor.

The agency told a House of Rep­re­sen­ta­tives panel yes­ter­day to ask the coun­try’s top oil com­pany to ex­plain why NPDC, be­ing the ex­plo­ration arm of the NNPC, could not liq­ui­date the huge debts it owes from its ac­tiv­i­ties in the sec­tor.

Speak­ing dur­ing a ses­sion with mem­bers of the ad­hoc panel prob­ing rev­enue leak­ages in the oil and gas sec­tor, the head of planning at DPR, Fo­lasade Odunuga, said NPDC con­sis­tently re­fused to pay roy­al­ties on its crude pro­duc­tion ac­tiv­i­ties.

Re­spond­ing to ques­tions from mem­bers of the panel on how roy­al­ties are paid, Mrs Odunuga said the Cen­tral Bank of Nige­ria (CBN) is the au­thor­ity that de­ter­mines the rate at which roy­al­ties paid in dol­lars are con­verted to naira be­fore re­mit­ting same into the fed­er­a­tion ac­count.

“Roy­al­ties on crude oil are paid strictly in dol­lars di­rectly into the fed­er­a­tion ac­count in JP Mor­gan, man­aged by the CBN,” she said.

But Morde­cai Ladan, DPR head, said the agency has been hav­ing good work­ing re­la­tion­ship with the CBN and that it had no cause what­so­ever to doubt the apex bank.

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