NNPCL denies allegations of unremitted $15 billion oil revenue to federation account

The Nigerian National Petroleum Company Limited (NNPCL) has refuted claims of failing to remit $15 billion in oil revenues to the Federation’s account, as reported in the 2021 Nigeria Extractive Industries Transparency Initiative (NEITI) report.

NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, addressed the issue in response to NEITI’s allegations and subsequent legal action by the Socio-Economic Rights and Accountability Project (SERAP) against the administration of President Bola Ahmed Tinubu.

NNPCL clarified that as of May 31, 2023, the subsidy bill had reached N3.736 trillion. The company also revealed receivables due from the Federation to NNPC Exploration & Production Limited (NEPL) amounting to $712 million, equivalent to N309.07 billion, which were revenues not remitted to NEPL but paid into the Federation account.

While acknowledging that the Federation owed NNPC Ltd. the sum of N4.207 trillion as net indebtedness, the company noted that it was indebted to the Federation in the sum of N2.852 trillion, primarily consisting of outstanding Good and Valuable Consideration (GVC) related to government upstream divestments, royalties, and Petroleum Profit taxes (PPT).

Regarding gas-to-power debts, NNPCL stated that the non-payment of NNPC Ltd.’s share of upstream joint venture gas supplied to government-owned plants resulted in an indebtedness of N174.07 billion by the Federation.

However, the company did not provide details regarding the missing N200 billion budgeted for refinery repairs in Nigeria between 2020 and 2021, as indicated in NEITI’s report.

NNPCL expressed its commitment to collaborating with NEITI and all relevant stakeholders within the Reconciliation Committee established by President Tinubu to investigate, review, and reconcile financial records.