NNPC yet to remit N4.9trn into Federation account - RMAFC

– The Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has stated that NNPC is yet to remit N4.9trn into the Federation account

– NNPC was said to have rejected the findings of the audit report recently submitted by the office of the Auditor- General of the Federation to the National Assembly.

Auditor General of the Federation, Samuel Ukura

According to the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Nigerian National Petroleum Corporation (NNPC) is yet to remit N4.9 trillion into the Federation Account. This piece of information was disclosed on Monday, March 21.

A statement from Ibrahim Mohammed, the commission’s Head of Public Communications stated that the records revealed NNPC owes more than what was stated in the audit report by the Office of the Auditor-General of the Federation.

“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,” the statement said.

The statement also said the report was from the reconciliation statement as enclosed 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.

The commission mentioned the alleged payment of 235 million dollars obtained from the sales of natural gas into an unstated Escrow Account by the NNPC was proceeds gotten from funding various gas projects.

It added that the proceed was from a three-party agreement on gas projects. The agreement involved Nigeria Agip Oil Coy, Shell Petroleum Development Coy of Nigeria and Total E&P Nig. Ltd, under Nigeria Liquefied Natural Gas.

“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 was also stated that RMAFC, NNPC and the ministry of finance in December 2015 had agreed to carry out a forensic audit of the NNPC to discover the actual obligation of the corporation to the federation. It also added that the audit was expected to be concluded by the end of March 2016.

It was reported that the Office of the Auditor-General said in its report for 2014 that the NNPC did not remit N3.2 trillion in 2014.

Not long after, the NNPC was said to have rejected the findings of the audit report recently submitted by the office of the Auditor- General of the Federation to the National Assembly.

NNPC has claimed its balance to the Federation Account for 2014 was N326 billion only.

Recently, the Senate began an investigation into alleged misappropriation of 3.3 trillion naira by Ministries, Departments and Agencies in the 2014. The office of the Auditor General of the Federation presented an audit report to the National Assembly on March 14.

In the report, the AGF revealed how the Nigerian National Petroleum Corporation (NNPC) failed to remit N3.2 trillion into federation account in 2014 from sales of crude oil.