NNPC headquarters

The Nigerian National Petroleum Corporation, NNPC has debunked a report by the auditor-general which alleged that it had failed to remit 3.2 trillion naira ($16 billion) in revenues to the government in 2014.

The state-owned company said Samuel Ukura, the auditor was wrong.

Rather, it said, it only owes $1.64 billion.

The auditor-general made the allegations in a report two days ago.

“NNPC wishes to state in strong terms that the AuGF’s (Auditor General of the Federation’s) declaration is erroneous,” it said in a statement, adding that the auditor-general had failed to account for costs including a fuel subsidy, pipeline vandalism and maintenance.

“Consequently, the figure owed to the Federation Account as at January 2015 Federation Account Allocation Committee (FAAC) meeting report was N326,142,137,205.79 ($1.64 billion)…and not the N3.23 trillion alleged by the AuGF,” said NNPC.

Under the constitution, the Nigerian National Petroleum Corporation (NNPC) must hand over its oil revenue – which makes up about 70 percent of total income – and money is then paid back based on a budget approved by parliament.

But the act establishing the state oil company allows it to cover costs before remitting funds to the government.