The Department of Petroleum Resources (DPR) has indicted the Central Bank of Nigeria (CBN) for determining the rate at which royalties paid in dollars are converted to naira before remitting into the Federation Account, The Guardian reports.
It said the situation had led to a loss of N6 trillion in one year. At the hearing of the House of Representatives Ad-hoc Committee investigating revenue leakages in the oil and gas sector from January 2016 to January 2017, it said revenue remittances were weak and inconsistent within the period and sought for clarification on the disparities observed in the receipts of remittances submitted by International Oil Companies (IOCs) as issued by the department.
DPR however urged the panel to find out from the NNPC why NPDC, the corporation’s subsidiary, had failed to make royalty payments on its crude production activities. Also from some of the receipts made available to the panel, it was observed that the DPR converted dollars into naira before remitting into government accounts and that CBN converted dollar remittances using about N167 to $1 instead of the current N305 to $1. The DPR officials however denied any involvement, saying that the DPR does not handle cash directly.
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