The Nigerian National Petroleum Company Limited (NNPCL) has strongly refuted allegations that it failed to remit $15 billion in oil revenues to the Federation’s account. This response comes in reaction to the 2021 report by the Nigeria Extractive Industries Transparency Initiative (NEITI).
The 2021 NEITI report had claimed that NNPCL did not remit $15 billion to the federation account, resulting in a lawsuit by the Socio-Economic Rights and Accountability Project (SERAP) against the administration of President Bola Ahmed Tinubu for not investigating the missing funds.
NNPCL clarified that, as of May 31, 2023, the subsidy bill had reached N3.736 trillion. Additionally, the company stated that receivables due from the Federation to NNPC Exploration & Production Limited (NEPL) amounted to $712 million (equivalent to N309.07 billion at N434.08/US$1) for revenues that were not remitted to NEPL but paid into the Federation account. This statement aims to address concerns surrounding the alleged unremitted revenues.
“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.
Meanwhile, the company said it would collaborate with NEITI and all relevant stakeholders in the Reconciliation Committee set up by President Tinubu to investigate, review and reconcile the financial records.