The state oil company has once again come under negative spotlight as the House of Representatives resolved to probe alleged misuse of frontier exploration funds
The House of Representatives has resolved to launch an investigation into the activities of the Nigerian National Petroleum Company Limited (NNPCL) over alleged illegal expenditure of the frontier exploration fund.
The investigation, ordered on Wednesday, follows a motion of urgent importance presented by Rep. Billy Osawuru (APC, Edo).
Osawuru’s motion highlighted concerns over the NNPCL’s spending of the frontier exploration fund without the National Assembly’s approval, in alleged violation of the Petroleum Industry Act (PIA) 2021.
The PIA mandates that the frontier exploration fund, which comprises 30% of NNPC’s profit oil and profit gas from production sharing contracts, is to be used for exploration activities in Nigeria’s frontier basins.
These basins include the Anambra, Dahomey, Bida, Sokoto, Chad, and Benue regions, which are less explored or undeveloped.
In his lead debate, Osawuru emphasized that the unauthorized expenditure not only undermines the legislative oversight function but also constitutes a serious breach of financial management protocols. “The funds in question run into millions of dollars,” he noted, describing the NNPCL’s actions as a significant affront to the management of public finances and a grave financial misconduct.
The Deputy Speaker, Rep. Benjamin Kalu (APC Abia), who presided over the session, endorsed the motion and instructed the House Committee on Petroleum Resources to conduct a thorough investigation. The committee is expected to report its findings to the House within four weeks.
The NNPCL has often be caught on the wrong side of the legislature with several probes over the corporation’s finances ongoing or aborted. Recently, the company was accused of defaulting in remittances to the public purse.
STAR CHECK: Citizens, particularly constituents of Rep. Osawuru, can track his legislative contributions and activities using this link.
