NNPC stinks, NEITI 2014 audit report confirms

The Nigeria Extractive Industries Transparency Initiative (NEITI) audit report for 2014 has revealed what the average watcher of the Nigerian economy knows, that the Nigeria National Petroleum Corporation (NNPC) stinks.

In a report released Friday, NEITI also indicted NNPC’s subsidiary, the Nigerian Petroleum Development Company (NPDC) of unclean financial records.

The revelations made by Waziri Adio, Acting Executive Secretary, NEITI claimed both establishments failed to remit $4.7 billion and N318.2 billion respectively to the Federation Account in 2014.

Amongst others, the report noted that, “The value of crude oil allocated to NNPC for domestic use in 2014 came to $15.67 billion or N2.44 trillion. Only N1.36 trillion was received in the year 2014 in respect of domestic crude oil; while the total deduction from domestic crude sales was N830 billion. This therefore leaves an unremitted balance of N250 billion from the domestic crude sales.”

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It added that, “NLNG paid $1.42 billion to NNPC as dividends, loan and interest repayments for 2014, but the amount could not be traced to the Federation Account. Between 2005 and 2013, there was an outstanding of $12.92 billion of dividends, interest and loan repayment made by NLNG to NNPC but not remitted to the Federation Account.

“The 2014 audit uncovered evidence of $1.5 billion paid by NLNG to NNPC between 2000 and 2004, but also not remitted. This brings the sum of unremitted NLNG dividends, interest and loan repayment to $15.8 billion as at the end of 2014.”

Even as NEITI’s report is pushed to the public domain, concerns continue to mount on the lack of transparency in the management of Nigeria’s oil resources. Unconfirmed reports allege that the petroleum ministry under the watch of President Muhammadu Buhari has done little to ameliorate the situation.

Earlier in the year, attempts made to unbundle the NNPC were vehemently resisted by some interest groups and the Minister of State, Ibe Kachikwu, was forced to recant government’s decision.

 

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