NNPC yet to remit $1.48bn into Federation Account –FG


CBN and NNPC logos

Four Months after former President Goodluch
Jonathan directed the Nigerian National Petroleum
Corporation to refund $1.48bn (N291.56bn) into the
Federation Account, the corporation has yet to do
An international audit firm,
PricewaterhouseCoopers, was last year hired to
carry out a forensic audit of the corporation
following an allegation by the former Governor of
the Central Bank of Nigeria, Lamido Sanusi, that
$49bn was not remitted to the Federation Account
by the NNPC.
Sanusi, who is now the Emir of Kano, had written a
letter to Jonathan that the amount was not remitted
to the Federation Account by the NNPC.
But following the controversy, which the letter
generated, a committee was set up to reconcile the
Sanusi later recanted and said the unremitted fund
was $12bn. He again changed the figure to $20bn.
PwC had stated in its report that while the total
gross revenues generated from crude oil lifting
was $69.34bn between January 2012 and July
2013 and not $67bn as earlier stated by the Senate
Reconciliation Committee, what was remitted to the
Federation Account was $50.81bn and not $47bn.
Within the $69.34bn, the audit report revealed that
$28.22bn was the value of the domestic crude oil
allocated to the NNPC, adding that the total amount
spent on subsidy for Premium Motor Spirit
amounted to $5.32bn.
But speaking on Tuesday shortly after this month’s
Federation Account Allocation Committee meeting,
the Permanent Secretary, Federal Ministry of
Finance, Mrs. Anastacia Nwaobia, said no amount
had been refunded as directed by Jonathan.
She said, “On refund from the NNPC, that was not
discussed but you can see that from the
breakdown, we have a refund of what we have
been expecting from the NNPC to the Federal
Government. We had a refund of about N6.33bn.
“The refund that you are asking about, maybe it is
a fallout of the forensic audit; that has not been
done. The forensic audit is still being considered
and I am sure that when a decision is taken, it will
be communicated and you will have that
Speaking on the amount shared at the meeting,
Nwaobia said the sum of N418.4bn was shared
among the federal, states and local governments
as revenue for the month of May.
She said that the shared amount comprised the
month’s statutory revenue of N324bn and N6.3bn
refunded by NNPC, being the corporation’s
indebtedness to the federation before the release
of the forensic audit report.
The permanent secretary said, “The gross revenue
of N324.96bn received for the month was higher
than the N282.06bn received in the previous month
by N41.99bn. The distributable statutory revenue
for the month is N324.06bn. The sum of N6.33bn
was refunded by the NNPC to the Federal
“Also, there was an exchange gain of N31.24bn,
which is proposed for distribution. The total
revenue distributable for the current month,
including VAT, is N418.4bn.”
Giving the breakdown of the revenue shared
among the three tiers of government, Nwaobia said
after deducting the sum of N6.82bn as cost of
collection, the Federal Government received
N151.8bn, representing 52.68 per cent; states,
N76.9bn, or 26.72 per cent of the total; while the
local governments received N59.3bn, or 20.60 per
cent of the amount distributed.
She announced that N29bn, representing 13 per
cent derivation revenue, was also shared among
the oil producing states.

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