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HomeEnergyNNPC subsidiary spends $9m on staff transfer cost

NNPC subsidiary spends $9m on staff transfer cost

Members of the Senate Committee on Upstream were, yesterday, shocked when a subsidiary of the Nigerian National Petroleum Corporation (NNPC), National Petroleum Investment Management Services (NAPIMS), declared that it spent $9 million on staff transfer cost of the agency in the 2016 fiscal year.

NAPIMS, which said that its total budget for 2016 was $171 million, also informed the committee that it spent $2 million on vehicle maintenance. The management of NAPIMS had come to defend the 2016 budget performance of the agency.

The agency, represented by its General Manager, Engr. Catherine Iheme, told the committee that the capital component of the budget and the operating expenditure were lumped together in the fiscal document. This singular action angered the lawmakers, who scolded the management of NAPIMS, insisting that they must go back and separate the two components for clarity and better understanding.

Iheme said: “On staff transfers, we are part of the NNPC group and sometimes you have transfer of staff in and out of NAPIMS. So all these transfers cost $9 million in 2016.” The lawmakers further demanded the detailed breakdown of how the $171 million were utilized, which the agency promised to make available at the next meeting. Iheme, however, ex plained that despite that the official budget figure of the agency for 2016 was $171 million, fluctuations in the exchange rate eventually reduced the actual figure to $168 million.

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“The total budget is $171 million equivalent, but that is not what we budgeted for. We had some expenditure in dollars and some in naira.

But using the N190 exchange rate, we had an equivalent of $171 million. In the actual performance, we may have had some dollar components and some naira components. Using the exchange rate of the actual date of transaction, which was converted, and that is why we have $168 million. And again, the rate of performance varies,” she explained. She also noted that the agency recorded 28 per cent revenue shortfall at the end of the fiscal year

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