NNPC, NEITI, Others To Investigate $1.9bn ‘Unremitted’ Revenue

The Nigerian National Petroleum Company Limited (NNPC) will continue to collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and all relevant stakeholders in the Reconciliation Committee set up by President Bola Tinubu to investigate, review and reconcile the financial records on alleged indebtedness to the Federation by both NNPC Limited and Federation Accounts Allocation Committee, FAAC.

This is coming on the heels of calls by a non-governmental organisation for a probe of several monies allegedly owed to the Federation by the national oil company.

NEITI in it’s 2021 Audit Report had said the NNPC failed to remit $1.9 billion to the government’s account at the end of 2021.

NNPC Ltd, in a statement signed by the chief corporate communications officer, Olufemi Soneye, said the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd.

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NNPC Ltd states that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one third of its value, a development that gave rise to an average of N400bn monthly subsidy bill, which subsequently put a strain on its revenues and finances.

NNPC Ltd further states that, “that subsidy bill accumulated to N3.736 trillion as of May 31st 2023.”

With respect to gas-to-power debts, the non-payment of NNPC’s share of upstream joint venture gas supplied to the government-owned plants had led to the accumulation of indebtedness of N174.07 billion by the Federation.

“Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amounted to $712 million (equivalent to N309.07 billion at N434.08/US$1) for revenues not remitted to NEPL but paid into the Federation account.”

The company noted that while the Federation owed NNPC the sum of N 4.207 trillion as net indebtedness, the Company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties and Petroleum Profit Taxes (PPT).