Unremitted Funds: NNPC LTD, NEITI, Others Working To Reconcile Figures

The Nigerian National Petroleum Company Limited (NNPC Ltd.) has said it would collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and all relevant stakeholders in the Presidential Reconciliation Committee to reconcile the unremitted figures in the 2021 Audit Report.

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President Bola Ahmed Tinubu set up the Reconciliation Committee to investigate, review and reconcile the financial records on alleged indebtedness to the Federation by both NNPC Ltd. and the Federation Accounts Allocation Committee, FAAC.

Chief Corporate Communications Officer of the NNPC Ltd., Olufemi Soneye in a statement on Monday said, the call by a non-governmental organisation for a probe of several monies allegedly owed to the Federation by the national oil company was therefore, baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC Ltd.

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TheFact Daily had reported that the
total unremitted revenues to the Federation by some relevant government agencies and companies in the oil and gas sector in the year 2021, according to NEITI, rose to over $8.251billion.

NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji while presenting the report in September 2023 in Abuja, lamented that despite the concerted efforts made last year to recover some of the revenues through the Ad Hoc Committee that was set up by the National Assembly, the 2021 figures showed an increase.

Particularly, the 2021 NEITI Audit Report said, the NNPC Ltd. could not remit the sum of $1.9 billion to the Federation’s account.

Meanwhile, NNPC Ltd. states that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one-third of its value, a development that gave rise to an average of N400 billion monthly subsidy bill, which subsequently put a strain on its revenues and finances.

NNPC Ltd. further states, “that subsidy bill accumulated to up to N3.736 trillion as of May 31st, 2023.”

It said, “with respect to 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.

“Similarly, 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).

“We would also like to use this opportunity to clarify that over the years, our relationship with NEITI has been very cordial, as seen in August 2020 when we became an EITI supporting company, joining a group of over 65 extractive companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI’s supporting company expectations.

“Indeed, aside from being a signatory to several of EITI’s global ethics and standards, NNPC Ltd., on the sidelines of the United Nations General Assembly (UNGA) in New York in September this year, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative.

“NNPC Ltd.’s book remains open to all our stakeholders as we remain committed to delivering value to Nigerians with integrity and as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company”, the statement said.

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