NNPC Partners NEITI, Others to Reconcile 2021 Financial Records

To reconcile 2021 financial records, the Nigerian National Petroleum Company (NNPC) Limited has vowed to continue working with the Nigeria Extractive Industries Transparency Initiative (NEITI) and other stakeholders.

The state-owned oil company said it will work with all relevant stakeholders in President Bola Ahmed Tinubu’s reconciliation committee to investigate, review, and reconcile financial records on alleged federation indebtedness by both NNPC and the Federation Accounts Allocation Committee (FAAC).

The state-owned oil company said it will cooperate with all relevant stakeholders in the reconciliation committee set up by President Bola Ahmed Tinubu to investigate, review and reconcile the financial records on alleged indebtedness to the federation by both NNPC and the Federation Accounts Allocation Committee (FAAC).

This is coming on the heels of calls by a non-governmental organisation for a probe of several monies allegedly owed to the Federation by the national oil company.

In a statement signed Olufemi O. Soneye, Chief Corporate Communications Officer of the NNPC, the state-owned oil company NNPC stated that the claims by the NGO were baseless, considering the fact that NEITI itself had dismissed many of the allegations in the said 2021 report, following a series of engagements with NNPC.

NNPC stated that at the outset of President Bola Ahmed Tinubu’s administration, it was made to sell Premium Motor Spirit (PMS) imported into the country at one-third of its value, a development that gave rise to an average of N400 billion monthly subsidy bill, which subsequently put a strain on its revenues and finances.

According to the state-owned oil company, “that subsidy bill accumulated to up to N3.736 trillion as of May 31st, 2023.”

The statement read: “With respect to gas-to-power debts, the non-payment of NNPC Ltd.’s share of upstream joint venture gas supplied to the government-owned plants led to the accumulation of indebtedness of N174.07 billion by the Federation.

“Similarly, the receivables due from the federation to NNPC Exploration & Production Limited (NEPL) as of 31st May 2023 amount to $712 million (equivalent to N309.07 billion at N434.08/$1) for revenues not remitted to NEPL but paid into the Federation account.

“While the Federation owed NNPC Ltd. the sum of N4.207 trillion as net indebtedness, the Company was only indebted to the Federation in the sum of N2.852 trillion, made up mainly of outstanding Good and Valuable Consideration (GVC) in respect of government upstream divestments, royalties, and Petroleum Profit taxes (PPT).”

The state-owned oil company said that over the years, its relationship with NEITI has been cordial, as seen in August 2020 when the NNPC became an EITI supporting company, joining a group of over 65 extractive companies, state-owned enterprises (SOEs), commodity traders, financial institutions and industry partners committed to observing the EITI supporting company expectations.

“Indeed, aside from being a signatory to several of EITI’s global ethics and standards, NNPC Ltd., on the sidelines of the United Nations General Assembly (UNGA) in New York in September this year, signed up to the United Nations Global Compact on human rights, labour, environment, and anti-corruption, thereby becoming the first state-owned oil company to join the global initiative.

“Our book remains open to all our stakeholders as we remain committed to delivering value to Nigerians with integrity and as espoused in our principles of Transparency, Accountability and Performance Excellence (TAPE), the bulwark of the Mele Kyari leadership of the company,” the NNPC said.