The house of representative has directed the Minister of Finance, Zainab Ahmed and Governor of the Central Bank of Nigeria, CBN Godwin Emefiele, to appear before it to justify $21 billion withdrawal from the Nigeria Liquified Natural Gas, NLNG account.
NNPC Group Managing Director, Mele Kyari, on Thursday, told the House committee on Public Accounts that it did not act illegally by withdrawing the humongous amount from NLNG, insisting that the CBN and the ministry were aware of it.
The lawmakers had, last month, said the funds should have been paid into the Federation Account, to be shared by the federal and state governments in the country, adding that the withdrawal was illegal and therefore, directed the NNPC boss to appear before the committee to give explanations.
But during his appearance on Thursday, Kyari, who was represented by Umar Ajiya, the chief financial officer of NNPC, said the withdrawal from the NLNG dividends account from was legal. The period of withdrawal was between 1999- 2020.
He said the proceeds from NLNG was withdrawn by NNPC based on approval of the federal government, noting that the national oil company represents the government on the NLNG board and manages its funds.
He explained that the proceeds could not have been paid into the federation account, as being claimed by the committee because “When I say the federal government, I do not mean NNPC. Ordinarily, it’s the federal ministry of finance that directs the utilisation. We (NNPC) are merely the agents of the federal government.
“All withdrawals (from NLNG dividends fund) were based on approved mandates of the relevant authorities. As far as NNPC is concerned, investments in NLNG were done on behalf of the federal government. I was the treasurer of NLNG, so I was aware of the federal government’s investment in the project.”
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