In a seismic development, the House of Representatives has taken decisive action, initiating a comprehensive investigation into the staggering loss of over $60 billion in revenue attributed to inflated cash calls within the Nigerian National Petroleum Company Limited (NNPCL) Joint Venture agreements.
The catalyst for this investigation emerged during yesterday’s plenary session, following the compelling motion presented by Hon. Chika Okafor, which garnered unanimous support from the House. This revelation has cast a shadow over the financial practices of NNPCL and ignited concerns about the responsible management of public funds.
Additionally, recognizing the urgency of addressing the economic fallout, the House mandated its Committees on Banking Regulations, Banking and Other Ancillary Institutions to collaborate with the Central Bank of Nigeria (CBN). Their mission is to explore viable mechanisms, policies, and partnerships for the potential adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency, alongside other major international currencies. This move aims to fortify Nigeria’s economic resilience in the face of currency depreciation, as underscored in a motion put forth by Hon. Jafaru Leko during the same session.
Hon. Chika Okafor, the driving force behind the investigation, emphasized that the NNPCL, representing the federal government, engaged in joint ventures with private oil companies across the oil and gas sectors. This collaborative effort, designed for sustainable revenue generation and economic development, has now come under scrutiny due to significant losses.
With NNPCL holding approximately 60% of the joint ventures and other partners sharing the remaining 40%, Okafor stressed the need for transparency and accountability. The joint ventures operate under a “Joint Operating Agreement,” outlining the responsibilities of each partner.
Okafor expressed deep concern over the bloated Cash Call Costs, attributing the substantial losses—amounting to an alarming $60 billion—to the NNPCL Upstream Investment Management Services (NUIMS). This unit, tasked with negotiating costs (both Capex and Opex), has allegedly mismanaged funds over the years, warranting a thorough investigation to uncover the extent of financial irregularities.
As this investigation unfolds, it marks a critical juncture in holding entities accountable for fiscal responsibility and ensuring the prudent use of public resources for the benefit of the Nigerian people.
