NNPC set to remit $1.48bn to Federation Account

17 February 2015, Abuja – Following the submission of the audit report on the Nigeria National Petroleum Corporation (NNPC), by PriceWaterhouseCoopers, which indicated that only $1.48b was yet to be remitted to the federation account as against $49b mentioned as missing, a Civil Society group, Move On Nigeria, has commended the Federal Government and the Minister of Petroleum Mrs. Allison Madueke for taking immediate steps towards remitting the said 1.48 billion to the Federation Account.

NNPC-logo-335x270The group said the implementation of the Committee’s report shows responsiveness and commitment to reform and best practices.

In a statement signed by its National Co-ordinator, Mr Clem Aguiyi, the group stated that the allegation on the missing money was an embarrassment to Nigeria, President Goodluck Jonathan and Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke. It stressed the need for top level officers to check their facts well before going public in order not to tarnish the image of Nigeria.

MoveOn Nigeria commended the President for authorizing the probe and also for making public the result of the probe. It further urged the national Assembly to expedite action on the passage of the Petroleum Industry Bill (PIB), which according to it, will expressly resolve some of the findings of the audit as regards NNPC procedures and enabling law.

According to the group, “the auditors stated in the report that:

*The gross revenue generated from FGN crude oil lifting for the period 1 January 2012 to 31 July 2013, was US$69.34billion and not US$67billion reported by the Reconciliation Committee.

*The total cash remitted into the Federation Accounts in relation to these crude oil lifting, was US$50.81billion and not US$47billion as earlier reported by the Reconciliation Committee.

*The balance of the generated revenue is accounted for as follows: a)Revenue reported by NPDC of US$5.11billion reported by the MD, Mr. Briggs during the Senate hearings will be accounted for through the financial statements of NPDC, and any dividend declared will flow into the Federation account. b) PMS and DPK Subsidy of US$8.7billion c) NNPC’s initial costs verified and accepted by the senate of US$2.65billion d) Additional NNPC costs following the forensic audit US$2.81billion e) Added to the Revenue is the unremitted NPDC signature bonus due for divested assets and taxes/royalties totaling US$2.22billion. e) Hence the net amount attributable to the federation account following the above summary is US$1.48billion”




– Vanguard

About the Author