The House of Representatives is to investigate alleged malpractices in the crude oil swap contracts of the Nigerian National Petroleum Cooperation.
This followed the adoption of a motion: Urgent Need for Forensic Investigation of the Contract known as Refined Product Exchange Agreement or Swap Contract.
It was moved by Rep. Michael Enyong (Akwa Ibom-PDP) in Abuja on Wednesday.
Enyong said it was to ensure that the extractive industries were transparently managed in accordance with global best practices and enhance Nigeria’s revenue/economic fortunes.
He added that the revenue of the country had plummeted due to leakages in the accounting system and mismanagement of the economy.
He explained that the Nigerian Extractive Industries Transparency Initiative in its 2011 and 2012 reports, asserted that there was revenue loss to the tune of $8 billion.
He said: “This is owing to discrepancies between the value of the crude oil given out and the refined products delivered.”
Enyong told his colleagues in the green chambers that in 2011, there was a shortfall of 500,075,32 litres of refined products by oil companies to the country.
“There is need to ensure transparency and accountability by the NNPC in the management of revenue accruing to the nation from crude oil,” he said.
He said this became necessary in the prevailing circumstances where major buyer of Nigeria’s crude oil, the US, had discovered alternative sources.
Enyong said the concerns raised in the motion were in tandem with the anti-corruption stance of President Muhammadu Buhari.
According to him, the investigation is important because due diligence in the management of the country’s revenue will rekindle hope in Nigeria’s creditors about its fiscal capacity.
Rep. Leo Ogor (Delta-PDP), the immediate past Deputy Leader of the House, relying on Rule 50, said the motion should be suspended because it was new and not on the notice paper.
Rep. Femi Gbajabiamila (Lagos-APC) said it should be taken because of its importance, adding that the relevant standing rules of the House should be suspended in order to take the motion.
The motion was later adopted when the question was put by the Speaker, Yakubu Dogara.
NAN.
—