NNPC owes Nigeria N4.9 trillion not N3.2 trillion, says RMAFC

NNPC owes Nigeria N4.9 trillion not N3.2 trillion, says RMAFC

Tuesday, March 22, 2016 1:11 am

NNPC  headquarters debt pile up

NNPC headquarters debt pile up

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) said on Monday that the Nigerian National Petroleum Corporation (NNPC) was yet to remit N4.9 trillion into the Federation Account.

A statement from the commission’s Head of Public Communications, Mr Ibrahim Mohammed, said that its records showed that the NNPC was owing more than what the Office of the Auditor-General of the Federation stated in its audit report.

“RMAFC observed that the figure of N3.2 trillion from the 2014 Annual Audit Report was obtained from the records of the FAAC Technical Sub-Committee on Domestic Crude Oil Sales,’’ it said.

It said the report was also from the reconciliation statement as contained in the NNPC’s mandate to the Central Bank of Nigeria (CBN).

“However, available records at the commission’s disposal indicate that between January 2011 and December 2015, the total indebtedness of the NNPC to the Federation Account is N4.9 trillion.

“This includes NNPC’s claims for subsidy on petroleum products, crude and product losses, strategic reserves and the pipeline maintenance cost.

“The commission’s records reveal that the corporation owed the Federation Account the sum of N1.99 trillion only in 2014 from domestic crude sales.

“Therefore, the figure quoted by the auditor-general of the federation must have included revenues from other sources,” it said.

On the alleged payment of 235 million dollars realised from the sale of natural gas into an undisclosed Escrow Account by the NNPC, the commission said it was proceeds from funding various gas projects.

It said that the proceed was from a tripartite agreement on gas projects under Nigeria Liquified Natural Gas with Nigeria Agip Oil Coy, Shell Petroleum Development Coy of Nigeria and Total E&P Nig. Ltd.

“The total amount transferred to the various accounts from 2012 to November 2015 was 1.62 billion dollars.

“The commission, through the FAAC Post Mortem, has consistently requested the NNPC to provide it with updated financial statements on the projects, but the NNPC was yet to respond,” it said.

It also said that RMAFC, NNPC and the ministry of finance in Decemeber 2015 agreed to carry out a forensic audit of the NNPC to ascertain the actual indebtedness of the corporation to the federation.

It said that the audit was expected to be concluded by the end of March 2016.

The News Agency of Nigeria (NAN) recalls that Office of the Auditor-General of the Federation in its report for 2014 said the NNPC did not remit N3.2 trillion in 2014.

Afterwards, the NNPC rejected the findings of the audit report submitted recently to the National Assembly by the Office of the Auditor-General of the Federation.

According to the NNPC, its balance to the Federation Account for 2014 was N326 billion only. (NAN)


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