Sanusi Insists $18.5bn Missing In NNPC, Disagrees With Diezani’s Position

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Former governor of the Central Bank of Nigeria (CBN) and Emir of Kano, HRH Sanusi Lamido Sanusi, has reacted to the recent audit report by PricewaterhouseCoopers on the alleged missing $20 billion oil money, saying the report has confirmed in the first instance that at least $18.5 billion was indeed missing.

In an opinion article titled, ‘Unanswered questions on Nigeria’s missing oil revenue billions’ published by the Financial Times of London, Alhaji Sanusi said the argument that the outstanding amount was used by the NNPC for apparently unlawful purposes such as kerosene subsidy, does not dismiss the notion that the NNPC illegally withheld billions of oil dollars from the government.

The former CBN governor said although PwC report concluded that a significant part of the unremitted funds were used to finance kerosene subsidy, such decision lacked presidential approval as former President Umaru Yar’Adua had stopped kerosene subsidy at the time. He faulted the earlier claims by the Petroleum Minister, Diezani Alison-Madueke, that the report exonerated the Nigerian National Petroleum Corporation (NNPC) accused of diverting the money

In spite of the subsidy claims for which NNPC withheld $3.4 billion for the period, Mr. Sanusi said Nigerians were still made to pay an average of N120 and N140 per litre of kerosene, far more than the supposed subsidised price of N50.

“Contrary to the claims of Petroleum Minister Diezani Alison-Madueke, the audit report does not exonerate the NNPC. It establishes that the gap between the company’s oil revenues between January 2012 and July 2013 and cash remitted to the government for the same period was $18.5bn. And it goes into details about the NNPC’s account of how it used that money, which raises serious questions about the legality of the state oil company’s conduct.

“The auditors say a significant part of the unremitted funds is supposed to have gone towards a kerosene subsidy that had been stopped two and a half years earlier by the late President Umaru Yar’Adua. His decree never appeared in the official gazette, leading some to question whether it ever had legal force.

“Evidence disclosed in the report suggests this is a sideshow. The executive secretary of the agency charged with administering subsidies confirmed that, acting on Yar’Adua’s orders, it had ceased granting subsidies on kerosene. There was no appropriation for such a subsidy in the 2012 or 2013 budgets.

“Throughout all this, Nigerians paid 120-140 naira a litre of kerosene, far more than the supposed subsidised price of 50 naira. Yet the state oil company withheld $3.4bn to pay for a subsidy that in effect did not exist. I have consistently held that this was a scam that violated the constitution and siphoned off money from the treasury”, Sanusi wrote.

The former CBN governor said of the $18.5bn in revenues that the state oil company did not send to the government according to PwC, “about $12.5bn appears by my calculations to have been diverted”.

“And this relates only to a random 19-month period, not the five-year term of President Jonathan,” he wrote.

As CBN governor, Mr. Sanusi had accused the NNPC of failing to pay about $20 billion in oil revenue to the government between 2012 and 2013.

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