Fresh Fraud Of N2.23trillion Uncovered In Audit Report On NNPC

share on:
NNPC recorded N197 billion loss in 2016

A fresh audit report by the Nigeria Extractive Industries and Transparency Initiative (NEITI) has indicted the Nigerian National Petroleum Corporation (NNPC) and its sub-units of either losing or refusing to remit a total of N2.23 trillion, consisting $3.8bn and N358.3bn, to the federation account as earnings from various aspects of its operations in 2013.

READ ALSO: Fuel Price Hike: Why We Shunned Nationwide Strike – TUC President

Speaking on Monday, while presenting the 2013 audit reports of the agency in Abuja, the Minister of Solid Minerals and Chairman of the NEITI Board, Kayode Fayemi, said the audit, which focused on all aspects of the extractive industries, showed that total revenue flows into the Federation Account from the oil and gas sector in 2013 was about $58.07 billion.

READ ALSO: NLC Suspends Nationwide Strike

According to him, some revenues that should have gone to the Federation in 2013 were not made or lost due to a number of reasons.

His words: “These revenues were broken down as follows: Sum of $3.8bn and N358.3bn as outstanding revenues from NNPC and its sub-units in 2013. These outstanding payments were due from unpaid consideration from the divested OMLs (Oil Mining Liseases), cash call refunds from NAPIMS (National Petroleum Investment Management Services), and NPDC (Nigerian Petroleum Development Company) liftings from NAOC JV (Nigerian Agip Oil Company Joint Venture), etc.

“Sum of $5.966bn and N20.4bn as revenue losses to the Federation. These losses were due to offshore processing agreement, crude swap, crude theft, etc. Sum of $599.8m as under-assessments/under-payments of petroleum profit taxes and royalties by oil and gas companies as a result of the use of different pricing methodology by the government and the companies because of the absence of a new fiscal regime.”




I am but your herald boy in the art of the pen.. An eccentric Environmental Biologist smouldered in the glorious epiphany of online journalism. If you ever find my article unduly insipid, sue me and i’ll refund you...

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.