NNPC Faces Allegations of Unremitted Funds Totaling Billions in 2021
The Nigerian National Petroleum Corporation (NNPC) is under scrutiny as it faces allegations of failing to remit substantial funds to the Federation Account in 2021.
Social Economic Rights and Accountability Project (SERAP) has raised concerns about significant amounts that may be missing from NNPC’s transactions.
In 2021, the NNPC reportedly collected $221.82 million from “export gas sales” but failed to remit this money. Additionally, the corporation allegedly did not remit $69,633 and $882,958 collected as “gas royalty and taxes,” as well as “crude royalty/concession rental and taxes of $26.36 million and $5.63 million,” all raising questions about the whereabouts of these funds.
Further discrepancies arise from the NNPC’s collection of $69.30 million “from the sale of crude oil lifted from OML 116” but only remitting $61.68 million, leaving a balance of $7.61 million (equivalent to N3.14 billion as per the 2021 NAPIMS AFS) unremitted to the Federation.
In addition to these allegations, the NNPC purportedly received $278.813 million “from trial marketing period crude lifting in 2021,” yet failed to remit these funds to the treasury.
Furthermore, the NNPC reportedly collected N343.56 million as “miscellaneous revenue” and N9.73 billion as “pipeline transportation revenue” in 2021, but neither amount was remitted to the Federation Account.
Serious concerns also revolve around $722.60 million received by the NNPC “as dividend and interest” in 2021, with no reported remittance to the Federation Account or clear accounting for these funds.
Moreover, in 2021, the NNPC reportedly obtained and spent “$3 billion [purportedly] to settle subsidy payments due to petroleum product marketers,” but details regarding the subsidy and its beneficiaries remain undisclosed.
Lastly, the NNPC, along with the Nigerian Upstream Petroleum Regulatory Commission (NPDC), allegedly failed to remit Federation revenues totaling $13.591 million and $8.251 billion in 2021.
These allegations raise significant questions about financial transparency and accountability within the NNPC, as the corporation is accused of failing to remit substantial funds to the Federation Account. The investigation into these claims is ongoing.
Additionally, concerns regarding crude oil volume losses due to theft/sabotage and measurement errors, totaling 31.04 million barrels and 37.57 million barrels in 2021, further highlight the challenges facing Nigeria’s oil industry.
Furthermore, the Nigeria Extractive Industries Transparency Initiative (NEITI) noted in its 2021 report that many oil and gas companies in Nigeria employ complex ownership structures that conceal the true identities of their owners, emphasizing the need for increased transparency in the industry.
These allegations, along with the ongoing concerns about financial transparency and accountability within the NNPC, underscore the importance of addressing these issues to ensure the proper management of Nigeria’s valuable natural resources.