Sanusi Lamido Sanusi, governor of Central Bank of Nigeria (CBN) has said that the Nigerian National Petroleum Corporation (NNPC) had no right to retain $10.8 billion in income, which has contributed to a drop in savings.
Sanusi also said that the action of the NNPC has exposed the country to possible price shocks.
“Given where the oil price is, we should have more in terms of reserves and savings, and because we don’t have that we are susceptible to shocks in the event of a decline in the oil price,” Sanusi, said in an interview with Bloomberg.
A letter Sanusi wrote to President Goodluck Jonathan alleging the Nigerian National Petroleum Corp. had withheld $49.8 billion in revenue sparked a public outcry when it was leaked to local newspapers last month.
Ngozi Okonjo-Iweala, Finance minister told reporters on December 18 a reconciliation of the accounts showed unaccounted oil receipts stood at $10.8 billion.
“No one has the right to retain money that should have gone to the federation account, so the fact that you’ve admitted retaining, or withholding $10 billion is itself bad enough,” said Sanusi.
“This money was supposed to come in and if it came in, it would be part of our reserves and part of our excess crude savings.”
Bernard Otti, the NNPC’s group executive director of finance and accounts, said on January 10 the $10.8 billion was spent on pipeline repairs, fuel subsidies and reserve fuel.
The lack of accounting in oil revenues has increased pressure on Jonathan as he faces defections from the ruling Peoples Democratic Party and former President Olusegun Obasanjo criticised him for failing to tackle corruption.
Sanusi, who doesn’t plan to renew his contract as governor when it expires in June, said there is no request from Jonathan to resign and “it’s back to business as usual.”