NNPC Addresses Allegations of $15 Billion Revenue Misallocation

The Nigerian National Petroleum Company (NNPC) denies failing to remit $15 billion in oil revenues to the Federation’s account.

The Chief Corporate Communications Officer of NNPCL, Olufemi Soneye, responded to the 2021 report by the Nigeria Extractive Industries Transparency Initiative (NEITI).

The 2021 NEITI report alleged that NNPCL did not remit $15 billion to the federation account. Due to its failure to look into the missing funds, the Socio-Economic Rights and Accountability Project (SERAP) filed a lawsuit against President Bola Ahmed Tinubu’s administration.

NNPCL clarified that, as of May 31, 2023, the subsidy bill had risen to N3.736 trillion.

The business also said that as of May 31, 2023, the Federation owed NNPC Exploration & Production Limited (NEPL) $712 million, which is about N309.07 billion at N434.08/US$1. This was for money that should have been paid to NEPL but instead went into the Federation account.

“The receivables due from the Federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount 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.

“While the Federation owed NNPC Ltd. the sum of N4.207 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).

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

However, NNPCL failed to give details on the N200 billion budgeted to repair the refineries in Nigeria that are missing and unaccounted for between 2020 and 2021, as contained in the NEITI’s report.

The company declared that it would work with NEITI and all pertinent parties in the President Tinubu-instituted Reconciliation Committee to look into, examine, and reconcile the financial records.

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