House of Representatives yesterday resolved to probe the Nigerian National Petroleum Cooperation, NNPC, over alleged malpractices regarding crude oil swap contracts.
The House said the measure was to ensure that the nation’s extractive industries were transparently managed in accordance with global best practices.
It also stressed that the move would enhance Nigeria’s revenue and economic fortunes if properly managed.
The resolution was the fallout of a motion sponsored by Hon. Michael Enyong titled ‘Urgent Need for a Forensic Investigation of the Contract known as Refined Product Exchange Agreement or Swap Contract.’
In his lead debate, Enyong observed that the revenue of the country had dwindled due to leakages in the accounting system and mismanagement of the economy.
The lawmaker explained that in its 2011 and 2012 reports, the Nigerian Extractive Industries Transparency Initiative, NEITI, pointed out that there was revenue loss to the tune of $8 billion owing to discrepancies between the value of the crude oil given out and the refined products delivered.
He informed the House that in 2011, there was a shortfall of 500, 075, 32 litres of refined product under the listed companies: Transfigura 173, 786, 600 litres, Vitol 654, 440 litres, Taleveras 152, 308, 878 litres, Aiteo Ltd 193, 045, 590 litres and Ontario Oil & Gas 180, 278, 732 litres.
The legislator, however, insisted that there was need to ensure transparency and accountability in the management of revenue accruing to government.
According to him, “There is the need to ensure transparency and accountability by the NNPC in the management of revenue accruing to the nation from crude oil, particularly in the prevailing circumstances where major buyer of Nigeria’s crude ‎oil, the US has discovered alternative sources.
“The investigation is important because due diligence in the management of the country’s revenue will rekindle hope in Nigeria’s creditors about its fiscal capacity to manage its debts and still have resources with which to address it’s macro-economic concerns,” Enyong noted.
He further said that the concerns raised in the motion were in tandem with the anti corruption stance with the three arms of government.
Hon. Femi Gbajabiamila, however, insisted that because of the importance of the motion, the relevant standing rules of the House could be suspended to take the motion.
In his ruling, the speaker, Hon. Yakubu Dogara ruled Gbajabiamila out of order, calling on members to always stick to the House rules.

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