Reps to probe $60 billion joint ventures by NNPCL

The House of Representatives has resolved to launch an investigation into the loss of over $60 billion in revenue due to inflated cash calls by the Nigerian National Petroleum Company Limited (NNPCL) Joint Venture agreements.

The decision was sequel to the adoption of a motion moved at plenary yesterday by Hon. Chika Okafor.

The House also mandated its Committees on Banking Regulations, Banking and Other Ancillary Institutions to liaise with the Central Bank of Nigeria (CBN) to explore the appropriate mechanisms, policies, and partnerships required for the adoption of the Chinese Yuan (CNY) as an official foreign exchange reserve currency, alongside other major international currencies.

That was after the adoption of a motion on the need to use the Chinese Yuan to mitigate the effect of Naira depreciation, moved at plenary yesterday by Hon. Jafaru Leko.

Moving the motion on the investigation of revenue loss to bloated cash calls, Okafor said NNPCL, on behalf of the federal government, operated joint ventures and related agreements with private oil companies in both oil and gas sectors, with the aim of sustainable revenue generation and economic development.

He stressed that NNPCL, as the representative of the federal government and the federation, had about 60 per cent holdings, while other partners had the remaining 40 per cent.
Okafor added that the joint ventures operated under a “Joint Operating Agreement” that spelt out the responsibilities of each of the partners in the ventures.

He stated, “Concerned that due to bloated Cash Call Costs, the NNPCL Upstream Investment Management Services (NUIMS), a unit under the NNPCL in charge of negotiation of costs (both Capex and Opex), have caused huge losses in the neighbourhood of ($60,000,000,000) Sixty Billion Dollars over the years.”