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NNPCL’s Failure To Remit $15bn Oil Revenues Into Federation Account Not True — Spokesman

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The Nigerian National Petroleum Company Limited (NNPCL) has denied reports that it failed to remit $15 billion in oil revenues into the Federation Account.

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

The 2021 NEITI report had alleged that NNPCL failed to remit $15 billion to the federation account, leading to a lawsuit by the Socio-Economic Rights and Accountability Project (SERAP) against President Bola Ahmed Tinubu’s administration for failing to probe the missing fund.

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

The company also stated that the receivables due from the Federation to NNPC Exploration & Production Limited (NEPL) as of May 31, 2023, 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.

“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.”

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Meanwhile, NNPCL has said it will collaborate with NEITI and all relevant stakeholders in the Reconciliation Committee set up by President Tinubu to investigate, review and reconcile the financial records.

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