NEITI reports FG loses

The Nigeria Extractive Industries Transparency Initiative (NEITI} says Nigeria lost N60.99 billion and another 2.27 billion dollars to the Offshore Processing Arrangement (OPA) and crude for product swap arrangement, valuation issues, crude oil and petroleum products losses.

NEITI stated this, in its ‎2015 Oil and Gas Industry Audit, released Friday in Abuja.

It said that a net loss of 723 million dollars was recorded through the Offshore Processing Arrangement, meaning that the value of refined products that the country received through OPA was less than the value of the crude given by 723 million dollars, even after allowances had been made for costs and margins.

“The President Muhammadu Buhari administration cancelled the OPA in November 2015 for being uneconomical. However, there was an outstanding liability of 498 million dollars by companies contracted under OPA from under-delivery of imported products.” It said

The report also noted that 90 million dollars was lost through a practice where NNPC used a revised/lower pricing option at the point of payment instead of the higher price at the point of purchase.

It equally recommended that non-cash call expenses should be paid from NNPC overhead budget, while payment to NIA and others from cash call account should be discontinued.

Commenting on the report, Executive Secretary of NEITI, ‎Mr. Waziri Adio, ‎said, “Beyond providing a snapshot of what transpired in 2015, this report reveals money to be recovered, leakages to be blocked, and urgent reforms to be undertaken.

Source:TheNation

TO DIRECTLY RECEIVE NEWS UPDATES TO YOUR EMAIL FOR FREE, DO WELL TO SUBSCRIBE TO FLASHME NEWSLETTER. ALSO CONNECT WITH US ON WHATSAPP +2348161137111, TWITTER: @FLASHMENEW, AND TO REPORT NEWS OR ARTICLE, SEND THEM TO EMAIL: CONTACT@FLASHMENEWS.COM