An audit report of the Nigeria Extractive Industries Transparency Initiative (NEITI) has alleged that the Nigeria National Petroleum Corporation (NNPC) did not remit $12.9billion (approximately N2.23trillion) to the federation account between 2005 and 2013.
According to the report which was unveiled on Monday in Abuja by the minister solid minerals, Kayode Fayemi, who is also the chairman of NEITI board, the unremitted funds were the sum of dividends, interest and loan repayment from the Nigeria Liquefied Natural Gas (NLNG).
The Minister of Solid Minerals and Chairman of the NEITI Board, Kayode Fayemi, said the audit, which focused on all aspects of the extractive industries, showed that total revenue flows into the Federation Account from the oil and gas sector in 2013 was about $58.07 billion. The figure represented about eight per cent decline when compared to the $62.9 billion realised in 2012.
Minister of solid minerals and chairman of NEITI board, Kayode Fayemi presenting the report. To his left is Waziri Adio, NEITI executive sectretary
The report presented by the minister read;
“The audit revealed that NLNG paid the sum of $1.289bn as dividend, interest and loan repayment for 2013. NNPC acknowledged receipt of this amount, but did not remit it to either the federal government or the federation. However, it is important to also note that the 2013 figure brings to $12.9 bn the total NLNG payments received by the NNPC between 2005 and 2013, but not remitted by the NNPC to the federal government or the federation.”
The report also revealed that Nigeria lost $518m to offshore processing arrangement and crude for product swap arrangement in 2013.
NEITI recommended that the NNPC and its sub units refund outstanding payments to the federation. "Government should investigate the status of NLNG dividends; NNPC should discontinue alternative importation arrangements and limit itself to export of crude and import of refined products; NNPC should abide by the federal government financial regulations, and always comply with the 90-day credit period,” it added.
Responding to a question on whether the NNPC had returned some of the unremittted funds, Fayemi said: “It is possible that certain refunds have been made, but that will not detract from the veracity of the report.”
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