NNPCL Joint Venture Agreements Under Scrutiny as House Initiates $60bn Revenue Loss Investigation

In a bid to unravel the mystery behind the alleged loss of over $60 billion in revenue linked to inflated cash calls by the Nigerian National Petroleum Company Limited (NNPCL) Joint Venture Agreements, the House of Representatives has taken a decisive step by mandating relevant committees to conduct a comprehensive investigation into the operations.

This significant development transpired following the adoption of a motion brought to the floor of the plenary on Wednesday by Chika Okafor, shedding light on the NNPCL’s operations on behalf of the Federal Government.

The company oversees Joint Ventures and related agreements with private oil companies in both the oil and gas sectors, aiming for sustainable revenue generation to bolster the nation’s economic development.

Under the Joint Operating Agreement, the NNPCL holds approximately 60% stake on behalf of the Federal Government and the Federation, with the remaining 40% distributed among other partners.

The motion raised concerns about the activities of the NNPCL Upstream Investment Management Services (NUIMS), a unit responsible for negotiating costs (both Capex and Opex). According to Okafor, the bloated cash call costs caused substantial losses estimated at over $60 billion over the years.

The House of Representatives emphasized the need for probity, transparency, and value for money in the NNPCL Joint Venture operations, prompting the decision to initiate a thorough probe.

This investigation aims to scrutinize income and cash call costs due to each partner, especially the federation, while evaluating whether due process and diligence were followed.

Okafor pointed out that the alleged activities of NUIMS had resulted in substantial revenue losses, fiscal deficits, and an alarming debt profile.

The House is determined to ensure accountability in the NNPCL’s Joint Venture operations and address the financial implications of the reported cash call inflation.

As the investigation unfolds, the nation awaits the outcome, anticipating clarity on the alleged revenue losses and insights into the operations of the NNPCL that have been at the center of this financial controversy.