Budget Office Boss Accuses NNPCL Of Retaining 70% Oil Revenue, Seeks PIA Amendment

The manager wide of the Budget Office of the Federation, Tanimu Yakubu, has accused the Nigerian National Petroleum Company Limited (NNPCL) of retaining up to 70 per cent of Nigeria’s lipid gross nether the Petroleum Industry Act (PIA) 2021, and called for an urgent amendment to the law.

Speaking astatine a citizens’ and stakeholders’ engagement forum organised by the Federal Ministry of Budget and Economic Planning successful Abuja, Yakubu said the instrumentality granted NNPCL 30 per cent of the country’s gross lipid gross arsenic absorption fees. At the aforesaid time, the national authorities inactive covered its operational costs.

Yakubu explained that the PIA grants NNPCL 30 per cent of the country’s gross lipid gross arsenic absorption fees, portion the national authorities inactive shoulders the company’s operational costs. Furthermore, an further 30 per cent of gross lipid and state profits is allocated to the Frontier Exploration Fund, efficaciously allowing NNPCL to power astir 70 per cent of Nigeria’s lipid earnings.

He warned that this gross statement has wreaked havoc connected Nigeria’s fiscal space, importantly reducing funds disposable for captious infrastructure development. Yakubu emphasised that the nation’s gross challenges stem not from lipid terms declines oregon accumulation shortfalls, but from this structural contented successful however lipid revenues are distributed nether the existent law.

“When that instrumentality came into being, it gave NNPC Limited 30 per cent of the country’s gross lipid gross arsenic a absorption fee, portion inactive absorbing operational costs, positive different 30 per cent for the Frontier Exploration Fund. My calculations amusement NNPC takes not little than 70 per cent of the country’s lipid revenue, which constitutes astir 80 per cent of the funds financing our nationalist infrastructure,” Yakubu stated.
Yakubu warned that the statement had caused “havoc” successful the fiscal space, depriving the authorities of captious infrastructure funds. He stressed that the situation, not lipid terms diminution oregon accumulation shortfalls, was the existent origin of Nigeria’s gross dilemma.

“When that instrumentality came into being, it gave NNPC Limited 30 per cent of the country’s gross lipid gross arsenic a absorption fee, 30 per cent, portion inactive absorbing its operational costs. It gave different 30 per cent of the gross state and lipid nett arsenic an endless endowment successful favour of Frontier Exploration Fund.

“When I did the arithmetics past year, it was wide that NNPC straight oregon indirectly took not little than 70 per cent of Nigeria’s lipid revenue. And everyone present knows that the lipid gross is astir 80 per cent of the root of funds that concern nationalist infrastructure,” the fund DG stated yesterday.” He said the diminution successful lipid prices and not the inability to actualise the projected lipid output caused the dilemma wherever the authorities has had to prioritise spending.

“And this ministry has been moving earnestly to guarantee this instrumentality is effected. We push, they resist, but we’re inactive pushing. And if this instrumentality is instantly enacted adjacent month, the amendment volition heighten our quality to pay.

“Everyone present knows that the lipid gross is astir 80% of the root of funds that concern nationalist infrastructure. This, and not the diminution successful lipid price, caused this dilemma,” helium said.

The Budget Office main disclosed that efforts were ongoing to amend the PIA. He said erstwhile implemented, the amendment would amended the government’s quality to conscionable its fiscal obligations.
Minister of Budget and Economic Planning, Senator Atiku Bagudu, confirmed the move, noting that President Bola Tinubu had already agreed to an amendment to the Act that his contiguous predecessor passed. “Today, Mr President has agreed that we should amend the Petroleum Industry Act,” Bagudu told participants astatine the engagement.

Earlier, statistician wide of the federation and CEO of the National Bureau of Statistics, Adeyemi Adeniran called for the enactment of civilian nine organisations for his bureau and basal their commentaries connected the information from the statistic bureau connected facts. “We expect a constructive engagement with authorities data. Prove your points with data,” helium stated.

He reemphasised that CSOs and different backstage stakeholders should interact with statistical information either for their idiosyncratic usage oregon prosecute the authorities with facts and figures, not conscionable based connected societal media comments.

The Budget Minister asked the NBS to prosecute the nationalist much earlier releasing immoderate large inaugural to guarantee the public’s buy-in, a directive Adeniran said would beryllium carried retired successful the Bureau’s aboriginal operations. “We hold that we request to bash much engagement. We are introducing a batch of infographics to interruption down information mentation for amended knowing by the people. We are...