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Alleged ₦8.4tn Withheld: Reps To Investigate NNPCL

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4 hours ago

Nov 28, 2024.

The House of Representatives on Wednesday directed its Committees on Finance and Petroleum (Upstream and Downstream) to investigate reports from the Revenue Mobilisation Allocation and Fiscal Responsibility Commission alleging that the Nigerian National Petroleum Company Limited (NNPCL) withheld ₦8.48 trillion as claimed subsidies for petrol.

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EKO HOT BLOG reports that additionally, the committees were tasked with verifying the cumulative unremitted revenue, or “under-recovery,” from petrol sales by NNPCL between 2020 and 2023.

They will also probe the Nigerian Extractive Industries Transparency Initiative (NEITI) report alleging that NNPCL failed to remit $2 billion (₦3.6 trillion) in taxes to the Federal Government.

₦8.4tn Withheld Reps NNPCL

This development coincided with the House’s approval of the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), ahead of President Bola Tinubu’s scheduled presentation of the 2025 Appropriation Bill to the National Assembly next week.

The Tinubu-led administration proposed an oil benchmark of $75 per barrel for 2025, with production estimates of 2.06 million barrels per day. However, lawmakers debated the benchmark. Minority Leader Kingsley Chinda advocated retaining the 2024 benchmark of $77.96, citing higher-than-expected oil prices earlier this year.

Chairman of the House Committee on Finance, Abiodun Faleke, defended the $75 projection as “responsible,” arguing it aligns with current market stability. Other lawmakers, including Ibrahim Isiaka, supported the benchmark while noting the possibility of revisions if needed.

Chinda also questioned the proposed domestic crude oil production increase from 1.78 million barrels per day in 2024 to 2.06 mbpd in 2025, citing historical underperformance. Faleke countered that production figures are improving and urged operators to meet higher targets.

Regarding the proposed exchange rate of ₦1,400 per dollar, Nasarawa State lawmaker Gbefwi Gaza highlighted the naira’s volatility and the need for measures to strengthen the currency.

The House adopted inflation rate projections of 15.75% for 2025, 14.21% for 2026, and 10.04% for 2027.

The 2025 Federal Government budget proposes ₦47.9 trillion in spending, with ₦34.82 trillion retained revenue and ₦9.22 trillion in new borrowings (domestic and foreign).

Capital expenditure is projected at ₦16.48 trillion, with statutory transfers and sinking funds estimated at ₦4.26 trillion and ₦430.27 billion, respectively.

After extensive debates, the House approved the MTEF/FSP and passed the contentious $75 oil benchmark.