Senate probes NNPC over NLNG’s $1.05bn dividend

The Senate has mandated its committee on gas resources to investigate the circumstances that led the management of the Nigeria National Petroleum Corporation (NNPC) to utilise the sum of $1.05 billion from its Nigeria Liquefied Natural Gas (NLNG) dividend to defray shortfall in fuel landing cost.

This was sequel to a motion by Sen Albert Akpan (PDP, A/Ibom), who said the revelation that the country’s top oil company uses its NLNG dividend for the purpose of settling an aspect of petroleum landing cost was disturbing.

The NNPC, through its Group Managing Director (GMD) Maikanti Kachalla Baru, had last week told a Senate ad hoc panel that there was no any form of subsidy going on, but that the corporation used $1.05bn from its NLNG dividend to defray the differential of the landing cost.

He said their action was based on the provisions of the Act establishing the corporation, which empowered NNPC to use the dividend for such purpose.

After Senate President Bukola Saraki ruled that the committee should probe the matter, Senate Leader Ahmad Lawan (APC, Yobe) said his ad hoc committee had already asked NNPC to produce relevant documents to back up its claims.

He said should the gas resources committee be tasked with another assignment on the same matter, it would amount to duplication of functions.

But Sen Emmanuel Paulker (PDP, Bayelsa) said the issue of NLNG was beyond subsidy hence the two issues should not be confused.

Saraki said the gas resources committee should go on with the assignment while the Lawan panel does its job.