NNPC acknowledges non-remittance of N77.92 to FG

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NNPC

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the Nigerian National Petroleum Corporation (NNPC) has acknowledged that it didn’t remit N77.92 billion to the federation account in 2017.

In a statement released on Thursday to announce the release of a pilot study that focused on the sale of Nigeria’s share of crude oil and gas produced in 2017, NEITI said a total of $14.5 billion was realised from the sale of the federation’s share of oil and gas for 2017.

Of this sum, $13.18 billion was realised from crude oil sales and $1.32 billion from gas.

“NNPC deducted N297 billion from earnings from the domestic crude allocation as costs and losses,” it said.

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Out of the N297 billion, NNPC said N141.6 billion was used for under-recovery on petroleum products, N25 billion for crude and product losses and N130.4 billion for pipeline repairs and maintenance.

“The sum of N77.92 billion was under-remitted by NNPC to the federation account from domestic crude allocation in 2017.

“NNPC acknowledges the under-remittance and states that there is an on-going reconciliation to net off the N77.92 billion from the established federation indebtedness to the corporation of N797bn arising from KPMG forensic audit of the corporation at the instance of the federation.”

According to the report, 692 million barrels of crude oil was produced in 2017.

“Out of this volume, the share that went to the federation was 240.9 million barrels representing 35 per cent of the total crude oil production for the year 2017,” the report read.

“The pilot report shows that the federation crude went to 29 destinations in 2017.

“The top-five destinations were: India with 41.3 million barrels (17.12%); USA, 30.6 million (12.72%); local refineries, 26.5 million barrels (10.98%); Netherlands, 22.9 million barrels (9.5%); and Spain, 21 million barrels (8.83%).”

Waziri Adio, NEITI executive secretary, said the report was published to ensure transparency in the processes and details of sales of minerals as these sales “are mostly shrouded in secrecy”.