• Friday, March 29, 2024
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Reps probe $21bn crude oil revenue allegedly lost to IOCs

The House of Representatives on Thursday resolved to probe the loss of $21 billion (about N7.6 trillion) crude oil revenue to International Oil Companies (IOCs).

To this end, the lawmakers have also resolved to set up an Ad-hoc committee to investigate the allegation.

The resolution followed a motion under matter of urgent public importance, sponsored by Sunday Marshall Katung (APC-Kaduna).

The committee is to investigate the operation of the Inland Basin Production Sharing Contract (PSC) and Nigerian National Petroleum Corporation (NNPC) and also to require the Minister of Petroleum Resources, Ibe Kachikwu to provide details of financial transactions between the NNPC and the IOCs during the period when the losses were incurred.

The Committee, is also expected to review the PSC and the Joint Operation Agreement and other relevant agreements with a view to regularising all the anomalies that have led to the loss of revenue.

In his lead debate, Katung, quoted the Minister of Petroleum, while briefing newsmen last year December, as saying that Nigeria lost about $21 billion (N7.6 trillion) to IOCs operating in the country due to non-implementation of the PSC.

The lawmaker said that the Minister had also said that the nation losses this colossal sum because federal government failed to act, amongst other things, adding, “in 2013, although there was a notice to oil companies that government would take steps to correct this anomaly, government did not carry it through in terms of going to the Federal Executive Council to get approval.”

He lamented that these acts of negligence, omission, incompetence, if not outright collusion and conspiracy with a view, possibly, to corruption have been perpetrated over such a long period of time when the nation has had well paid legal and technical expert in place.

Katung lamented that this development is a sad reminder of how the wealth of the nation end up in foreign land while her economy and the lot of her citizens continue to dwindle “as is evidenced by,  amongst others, her economic recession and the pervasive and acute poverty in the country.”

While stressing the need for the House intervention with the view to halt the corruption within the oil industry, the Kaduna lawmaker noted that these reckless incidences have resulted in the massive depletion of the nation resources and its revenue.