NEITI says $22b not remitted by NNPC

NEITI says $22b not remitted by NNPC

 

The Executive Secretary, the Nigeria Extractive Industries Transparency Initiative (NEITI), Waziri Adio alerted the Federal Government of the non remittance of the sum of $21billion by the Nigerian National Petroleum Corporation, (NNPC).

Ado disclosed this in Abuja on Tuesday during an interactive session with the media during which he gave a policy brief which centered on economic recovery and unremitted funds by the NNPC and its upstream arm, the Nigerian Petroleum Development Company (NPDC).

NEITI in its findings from series of audits of the oil and gas sector carried out by it indicated that NNPC and its upstream arm, NPDC, have failed to remit $21.778 billion and N316.074 billion to the Federation Account.

The report further stressed that those were amounts due from three main sources which includes: federation assets divested to NPDC and NPDC’s legacy liabilities payment for domestic crude allocation to NNPC and dividends from investment in Nigerian Liquefied Natural Gas Company (NLNG) paid to the NNPC, but NNPC however withheld the said funds.

The unremitted funds according to the report fell under the categories of the full payment for the 12 oil mining leases (OMLs) divested from the shell and Agip ventures, and the NNPC’s divestment of 55% of its stake in the shell JV valued at $1.8billion by the Department of Petroleum Resources (DPR).

It equally noted that the sum of $552 million cash call was erroneously paid on these divested assets by the National Petroleum Investment Management Services (NAPIMS), the investment arm of NNPC.

The NPDC was said to refunded  $424 million to NAPIMS but not remitted to the federation account.

The report added that NPDC is yet to refund $148.278 million and 2.42 billion from the cash calls mistakenly paid to it.

The report also revealed that, “unremitted revenues in this category relates to arrears of liabilities of taxes, royalties and levies. Leaving the amount owed by the NPDC at $5.531 billion and N72.435 billion.

NNPC in its defence explained that it withheeld DCA earnings to pay for downstream related operational costs and subsidies which NEITI expressed doubts about such withholding as they regularly exceeded actual subsidy costs.
The brief, in its action point, called on the federal government to investigate the status and use of NLNG dividends from 2004 to 2014 bad undertake criminal proceedings against anyone found wanting.

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