How NNPC fails to remit N77.92b in 2017 – NEITI

Nigerian Extractive Industries Transparency Initiative has disclosed that the Nigerian National Petroleum Corporation under-remitted N77.92bn to the federation account in 2017.

According to the pilot study report on the sale of crude oil, there is ongoing reconciliation of the amount that arose from KPMG Forensic audit.

The watchdog organisation, in a statement by its Director, Communications and Advocacy Dr. Orji Ogbonnaya Orji said, “Sum of N77.92bn 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 ongoing reconciliation to net off the N77.92bn from the established federation indebtedness to the corporation of N797bn arising from KPMG forensic audit of the corporation at the instance of the federation.”

NEITI noted that the total revenue from the sale of federation share of oil and gas for 2017 was $14.5bn – $13.18bn or 90.8 per cent from crude oil and $1.32bn or 9.1 per cent from gas.

NNPC said the report deducted N297bn from Domestic Crude Allocation earnings as costs and losses, broken down as follows: N141.6bn for under-recovery on petroleum products, N25bn for crude and product losses, and N130.4bn for pipeline repairs and maintenance.

According to NEITI, from the report, the total crude oil production for 2017 was 692 million barrels.

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.

Trend analysis for the year under review shows that 2017 federation share was four per cent higher than the 231.6 million barrels in the same category for 2016, but was 19 per cent lower than the 297.8 million barrels for 2015.

This shows that while there was a slight improvement on the figure for 2016 (a year characterised by vandalism and sabotage of oil facilities), crude production for 2017 was about a fifth less then the 2015 level, the report added.

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