A Review of the Nigerian Energy Industry

PwCAudit: NNPC to remit $1.48bn after reconciliation with DPR

12 January 2015, Abuja – The Nigerian National Petroleum Corporation (NNPC) has said it would remit an outstanding $1.48 billion balance of signature bonus from divested assets to its exploration and production arm, the Nigeria Petroleum Development Company (NPDC) as soon as it reconciles the figures with the Department of Petroleum Resources (DPR).

NNPC-logo-335x270NNPC stated at a briefing on the outcome of the forensic audit conducted by PriceWaterHouseCoopers (PwC) on crude oil revenues accrued to the country between January 2012 and July 2013 and which the former Central Bank of Nigeria (CBN) Governor, Sanusi Lamido Sanusi accused it of failing to remit outstanding proceeds from crude oil sales into the federation account, that the $1.48 billion is the balance of its remittance to the government on NPDC’s signature bonus.

The Group Managing Director (GMD) of NNPC, Joseph Dawha said in Abuja that the corporation and any of its subsidiaries cannot be said to be indicted on the ground of such outstanding remittance, adding that the entire revenue accruable to the federation had been fully accounted for in the report with clearly categorised components.
He noted that the $1.48 billion signature bonus was not part of the proceeds from crude oil sales as initially alleged by Sanusi but the balance of the book value for the divested asset which the DPR had valued and that it is working closely with the DPR to defray the amount as soon as possible.

Dawha also explained that the PwC audit had acknowledged its longstanding stance that a total of $50.81 billion had been remitted to the federation account as proceeds from crude oil sales within the period under review as against claims of $47 billion.
“The entire revenues accruable to the federation during the period have been fully accounted for in the report and the various components of the accruable revenue have been clearly categorised.

The issue of outstanding $1.48 billion NPDC signature bonus is in fact, the balance of the book value of the divested assets as assessed by the DPR and yet to be paid into the federation account by NNPC,” Dawha said.
He further noted that: “This does not in any way constitute an indictment. This value is still being reconciled with the DPR.
“Let me emphasis that there is no money missing. However the delay in payment of the true value of the divested assets is due to the unfinished reconciliation process amongst NNPC, DPR and other agencies of government.”
Speaking further on the timeline for the payment of the balance, the corporation’s Group Executive Director Corporate Planning, Dr. Tim

Okon said: “Part of the payment has been made and the remaining part if the component of this $1.48 billion and this is undergoing reconciliation and so we are discussing with DPR on the valuation done and in due course this will be settled.
“As soon as practicable because we are in discussion with the DPR and we are honouring the commitment that minister has made and we will do so as soon as we reconcile the numbers.”

– This Day

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