Available records show that the Nigerian
National Petroleum Corporation owe the
Federation Account a total of N4.9tn in
unremitted funds, the Revenue Mobilisation
Allocation and Fiscal Commission has said.


The Office of the Auditor-General of the
Federation recently said that the NNPC had not
remitted N3.2tn, a report that was denied by the
corporation. The corporation instead put the
unremitted funds at N326bn.


But in a new twist on Monday, the RMAFC said
between January 2011 and December 2015, the
funds not remitted to the Federation Account by
the NNPC amounted to N4.9tn.


In a statement issued in Abuja, the RMAFC’s
spokesperson, Mr. Ibrahim Mohammed, said the
figure of N3.2tn was from the 2014 Annual
Audit Report obtained from the Federation
Accounts Allocation Committee’s Technical Sub-
Committee on Domestic Crude Oil Sales and
Reconciliation Statement as contained in the
NNPC’s mandate to the Central Bank of Nigeria.
However, Mohammed said, “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 was N4.9tn, a figure that
included the NNPC’s claims for subsidy on
petroleum products, crude and product losses,
strategic reserves and pipeline maintenance
cost.”


The RMAFC spokesman added that while the
AUGF’s report claimed that the corporation
owed the sum of N3.2tn to the Federation
Account in 2014 from domestic crude sale, the
commission’s records revealed that the NNPC
owed the sum of N1.99tn for the year from
domestic crude sales.


Therefore, the figure quoted by the Auditor-
General of the Federation must have included
revenues from other sources, Mohammed said.
He added, “With regard to the alleged payment
of $235m realised from the sale of natural gas
into an undisclosed escrow account by the
NNPC, the NNPC on behalf of the NLNG had
entered into agreements with three International
Oil Companies i.e. Nigeria Agip Oil Company,
Shell Petroleum Development Company of
Nigeria and Total E&P Nigeria Limited under a
Modified Carry Agreement, proceeds from which
are deposited in escrow accounts for funding
the various gas projects under the NLNG.


“The total amount transferred to the various
accounts from 2012 to November 2015 was
$1.62bn. 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 has
yet to respond.


“The commission has been working with the
NNPC to reconcile the figures following a
tripartite meeting held with the NNPC, Federal
Ministry of Finance and the RMAFC in
December 2015, where it was agreed that in
view of the subsidy and other claims by the
NNPC, the forensic audit of the NNPC was very
critical in establishing which party was actually
indebted to the other.”


Mohammed added that the forensic audit was
expected to be concluded by the end of March.
In a response to the declaration of the AGF to
the National Assembly last week Monday that
the NNPC failed to remit the sum of N3.2tn to
the Federation Account for the period ended
December 31, 2014, the firm stated that the
auditor-general was incorrect.


The NNPC, in a document signed by its Group
Executive Director/Chief Financial Officer,
Finance and Accounts, Mr. Isiaka Abdulrazaq,
said the AGF’s declaration was inaccurate.


He had said, “The Auditor-General of the
Federation’s declaration is erroneous. It should
also be noted that although this period is before
the new NNPC management was appointed in
August 2015, the management still deems it fit
and important to correct any misinformation
about the activities of the corporation as this
will adversely affect its current and future
financial and operational plans if not corrected.


“The declaration by the AGF may have been
born out of a misunderstanding of how revenues
from crude oil and gas sales are remitted into
the Federation Account.”


Explaining how the funds were utilised, the
corporation stated that as part of its
responsibilities, the NNPC was getting an
allocation of 445,000 barrels of crude oil per day
for processing into petroleum products, which
would be distributed across the country.


It said any unprocessed crude was sold and the
proceeds used to pay for the importation of
petroleum products.


It stated that the proceeds from the sale of
these products were remitted to the Federation
Account after deducting the cost associated
with their supply and distribution.
The costs, it said, included subsidy on
petroleum products.


The NNPC argued that it was entitled to claims
on subsidy from petroleum products sold at
government regulated prices, whether imported
or locally refined.




source:: http://www.punchng.com/nnpc-owes-federation-account-n4-9tn-rmafc/


cc lalasticlala

nawa oo

Chai! See owing? Na him my nigga toks wan kill me with stress because of small N150k wey I dey owe am?



In fact toks, na till dem pass budget I go fit pay you mbok? Bagger!!!

This our NNPC sef don tire person.... No b say dem d do one concrete Job to help solve fuel problems ooo



Me I no just talk wetin dey my mind

Am waiting for the confirmation of this report by end of March. Lets see its actually 1.6, 3. 2 or 4.9.

My question is since nnpc is Nigeria own company, how will they pay this huge debt? Or will it be forsake?