NEITI indicts NNPC, NPDC for non-remittance of funds to Federation Account

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The Nigeria Extractive Industries Transparency Initiative (NEITI), has indicted the Nigerian National Petroleum Corporation (NNPC) and its subsidiary, the Nigerian Petroleum Development Company (NPDC), in its audit report for 2014 of failing to remit $4.7 billion and N318.2 billion to the Federation Account in 2014, Vanguard reports.

Highlighting key aspects of the report, acting Executive Secretary of NEITI, Mr. Waziri Adio, further stated that at the close of the 2014 audits, NPDC had not paid the outstanding $1.7 billion for the eight Oil Mining Leases (OML), under the Shell Joint Venture (JV) divested to it by NNPC. He also stated that the NPDC had also not paid for the four OMLs under the NAOC JV divested to it by NNPC, noting that the four assets were recently valued by the Department of Petroleum Resources (DPR) at $2.25 billion.

He further stated that there are outstanding liabilities of N68.28 billion from the NPDC for withholding Tax, Pay As You Earn, Education Development Tax, Value Added Tax and NDDC Tax, while the NPDC still has outstanding liabilities of $3.3 billion for Royalty Oil, Royalty Gas, Petroleum Profit Tax (PPT) and Gas Flare Penalty. He also accused the NNPC of failing to remit N250 billion to the Federation Account from its domestic sales of crude oil allocated to it.

He said, “The value of crude oil allocated to NNPC for domestic use in 2014 came to $15.67 billion or N2.44 trillion. Only N1.36 trillion was received in the year 2014 in respect of domestic crude oil; while the total deduction from domestic crude sales was N830 billion. This therefore leaves an unremitted balance of N250 billion from the domestic crude sales.”

In what has become constant feature in the NEITI audits, Adio stated that the NNPC received $1.42 billion from the Nigerian Liquefied Natural Gas (NLNG), as dividends, loan and interest repayments for 2014, but failed to remit same to the Federation Account, bringing the total NLNG payments not remitted by the NNPC between 2000 and 2014 to $15.8 billion.

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