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Nigeria’s House of Representatives has expressed readiness to investigate the loss of over $60bn revenue due to alleged inflated cash calls by the Nigerian National Petroleum Company Limited Joint Venture Agreements.

The resolution was passed sequel to the adoption of a motion sponsored by Hon Chike John Okafor, who solicited the House’s intervention with a view to ensuring accountability of public funds.

In his lead debate, Okafor who solicited the House’s intervention in line with the provision of Section 81 of the 1999 Constitution (as amended), observed that NNPCL on behalf of the Federal Government operates Joint Ventures and related agreements with Private Oil Companies in the Oil and Gas sectors, with the aim of sustainable revenue generation and economic development.

“The House also notes that the NNPCL, as representatives of THEM Federal Government and Federation, have about 60% holding while other partners have the remaining 40%.

“The House further notes that the joint ventures operate under a ‘Joint Operating Agreement’ that spells out the responsibilities of each of the partners in the ventures.

“The House is 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 neighborhood of $60 billion.

“The House is also concerned that the activities of NUIMS have resulted in huge revenue losses, fiscal deficits and an alarming debt profile.

“The House is aware of the need to ensure probity, transparency and value for money in the NNPCL Joint Venture operations,” he noted.

To this end, the House mandated its Committee on Finance to conduct a comprehensive investigation on all the NNPCL Joint Venture Operations to determine income and Cash Call costs due to each partner, especially the Federation/Federal Government of Nigeria and whether due process and diligence were observed in the exercise.