The House of Representatives has resolved to investigate the alleged misappropriation and illegal expenditure of frontier exploration funds by the Nigerian National Petroleum Company Limited (NNPCL).
This was sequel to a motion of urgent public importance by Rep. Billy Osawaru on the “Urgent Need To Investigate The Alleged Misappropriation And Illegal Expenditure Of Frontier Exploration Fund By The Nigerian National Petroleum Company Limited (NNPCL) Without The Prior Approval Of The National Assembly As Required By The Petroleum Industry Act, 2021”, on Tuesday at plenary.
Debating the motion Rep. Osawaru noted that section 4(2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to make laws for the order and good government of the federation or any part thereof.
He also noted that section 88 (1) and (2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) empowers the National Assembly to conduct investigations into the activities of any authority executing or administering laws made by the National Assembly.
The lawmaker stated that Section 9(4) of the Petroleum Industry Act 2021 (PIA) establishes the Frontier Exploration Fund to be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts.
The motion reads: “Further aware that section 9(5) of the Act, mandates NNPCL to solely utilize the Frontier Exploration Fund for the development of frontier acreages and utilize the funds to carry out exploration and development activities in the frontier acreages to carry out exploration and development activities in the frontier acreages subject to appropriation by the National Assembly.
“Informed that the NNPC Limited has consistently accessed and expended funds from the Frontier Exploration Fund without prior appropriation and approval by the National Assembly as required by the Act.
Further informed that hundreds of millions of dollars have been irregularly withdrawn from this Fund and expended on white elephant projects, unauthorized and illegal projects that appear patently illegal and in contravention of extant laws and due process requirements under the Constitution and the PIA.
“Disturbed that this alleged conduct by NNPC Limited grossly undermines the oversight powers of the National Assembly over the expenditure of public funds as enshrined in the Constitution. It also represents an affront to the principles of transparency, accountability and probity in the management of public finances.
Emphasizes that such brazen acts of illegality, if proven, cannot be condoned under any circumstances as they breed a culture of impunity, undermine our laws, and sabotage our collective efforts at institutionalizing fiscal discipline and good governance across all sectors”.
Rep. Osawaru further acknowledged that this is a grave financial misconduct which has far-reaching implications on our ability to effectively conduct oversight and enforce compliance with all extant laws, including the PIA which we worked so hard to enact in pursuit of transparency and accountability in Nigeria’s petroleum industry.
“It is thus incumbent on this House as representatives of the Nigerian people to take prompt action to investigate this matter and ensure that all perpetrators are brought to book”, he added.
The House adopted the motion and mandate the House Committees on Petroleum Resources Upstream to investigate and report back within four weeks for further legislative action.