Thursday, April 23, 2015

Buhari to Publish PwC Forensic Audit on NNPC

President-elect Muhammadu Buhari’s administration will publish the full audit of the Nigerian National Petroleum Corporation (NNPC) and expects the state-run oil firm to repay the government more than previously recommended, former Ekiti State Governor, Dr. Kayode Fayemi, has said.
According to a Bloomberg report, Buhari’s All Progressives Congress (APC) believes NNPC may need to refund more than the $1.48 billion stated in the highlights of a PricewaterhouseCoopers LLP (PwC) report released by the Auditor-General of the Federation in February, Fayemi, who is also the APC Presidential Campaign Director of Policy, said Tuesday in an interview at his residence in Lagos. Ohi Alegbe, NNPC’s spokesman, declined to comment.

“I have a figure that’s more than $1.5 billion that’s been talked about,” said Fayemi. “We’ve seen credible information that what PwC says is more than that. We will release the report. We’ll make it available to Nigerians as soon as we have full information on this.”

Former Central Bank of Nigeria (CBN) Governor and now Emir of Kano, Muhammad Sanusi II, was suspended by President Goodluck Jonathan last year after he alleged the NNPC hadn’t turned over about $20 billion of oil revenue to the government, which earns two-thirds of its revenue from the commodity.

Sanusi also said last month that the issue wasn’t addressed sufficiently.

The oil company said the PwC report, which Jonathan’s government hasn’t published in full, absolved it of Sanusi’s allegations. It has started to refund the $1.48 billion, Petroleum Minister Diezani Alison-Madueke told reporters on Wednesday.

The APC may also reorganise the NNPC, which regulates the petroleum sector and takes part in production through joint ventures with Royal Dutch Shell Plc., Exxon Mobil Corp., Total SA, Chevron Corp. and other companies, Fayemi said.

“NNPC will not be in the form or shape it is currently in,” Fayemi said. “Some measure of unbundling will happen.”
During the March elections, Buhari became the first opposition leader to oust a sitting president since the country’s independence from the United Kingdom in 1960. He will take power on May 29.

Buhari’s campaign focused on tackling corruption and Boko Haram’s insurgency. The Islamist group has killed more than 13,000 people, mainly in the northeast, since 2009.

Nigeria is also battling graft, ranking 136th out of 175 countries in Transparency International’s 2014 Corruption Perceptions Index, in line with Russia and Iran.

The military’s failure to defeat the militants is an “embarrassment” and it will be “re-professionalised” after a government audit on spending, Fayemi said.

Buhari told delegates at a conference of the Nigeria Labour Congress (NLC) in February that he would investigate how the military spent $32 billion over five years.

“Democratic control of the military is significantly lacking,” Fayemi said. “The leadership will change.”

Nigeria, Africa’s biggest economy and largest oil producer, has been battered by the 47 per cent fall in Brent crude prices since a one-year peak in June.

Economic growth is forecast to slow to 4.8 per cent this year, about half the average of the last 15 years, according to the International Monetary Fund (IMF).

The naira has weakened 17 per cent against the dollar in the past six months, more than any of the 24 African currencies tracked by Bloomberg.

Buhari’s government will be “clearly to the left” of Jonathan’s outgoing Peoples Democratic Party (PDP) and may boost social spending, including on free school meals and care for the elderly, Fayemi said.

The APC will be able to fund its plans by saving about N3 trillion ($15 billion) per year from plugging “leakages” and by improving non-oil tax collection, he said.

“This will be deployed to the power sector, to the social safety net,” he said.

Nigeria spends as much as $7 billion a year subsidizing fuel, an expense several economists criticize. Even though the subsidies create “artificial” pricing at gas stations, there’s no guarantee the APC government will cut them, according to Fayemi.

“In the short term, I don’t see us removing any subsidy,” he said.


  1. Good one, we want a transparent government

  2. Ohk,I can't wait for his inauguration, let the work get started. All our corrupt leaders your end is nigh