PIA: Reps seek audit of NNPC assets

The house of representatives on Wednesday resolved to investigate Nigerian National Petroleum Corporation (NNPC) assets.

At the plenary session, the lower legislative chamber said the probe will include the liabilities of NNPC and its subsidiaries before it is incorporated into the Nigerian National Petroleum Company Limited (NNPC Limited) to ensure accountability.

The green chamber passed the resolution following the adoption of a motion sponsored by Ibrahim Isiaka, a lawmaker from Ogun state.

While speaking on the floor of the house, Isiaka said there is a need to boost investors’ confidence and enhance transparency.

The lawmaker said it is necessary to audit the assets of NNPC because it will drive efficiency in the supply chain management of the newly established NNPC limited.

“The NNPC is empowered to manage the joint venture between the federal government and several foreign multinational corporations with assets and interests on land, swamp, continental shelf, and deep waters,” he said.

“The NNPC was commercialised into 12 strategic business units covering the entire spectrum of oil industry operations including exploration and production, gas development, refining, distribution, petrochemicals engineering, and commercial investments, among others.

“There is need to boost investors’ confidence and enhance transparency and efficiency in the supply chain management of the newly established NNPC limited owing to the outstanding credit sales and the much-needed revenues by the federal government to support annual budgets.”

After the motion was unanimously adopted, Femi Gbajabiamila, speaker of the house, said a 15-member ad hoc committee will be set up to carry out the investigation.

In August, President Muhammadu Buhari signed the petroleum industry bill into law. The law mandates the deregulation of the petroleum sector and provides for the establishment of a new national oil company — NNPC Limited — including the removal of fuel subsidies.

Section 53(1) of PIA 2021 requires the minister of petroleum resources to cause for the incorporation of the NNPC Limited within six months of the enactment of the PIA in consultation with the minister of finance on the nominal shares of the company.