On Monday, the Nigerian Extractive Industries Transparency Initiative
(NEITI) unveiled its 2013 audit report on the Nigerian oil and gas and
solid minerals sector in at a press conference held in Abuja.
The Minister of Solid Minerals and Chairman of the NEITI Board, Kayode
Fayemi, who presented the report, accused the Nigerian National Petroleum
Corporation (NNPC) of not remitting $3.8bn and N358.3bn to the federation
in 2013.
Summary of losses to the federation.
Here is a breakdown of the report presented by Kayode Fayemi
•NLNG paid the sum of $1.289bn as dividend, interest and loan repayment
for 2013. The NNPC acknowledged receipt of ýthis amount, but did not remit
it to either the federal government or the federation.
•The 2013 figure brings the total NLNG payments received by the NNPC
between 2005 and 2013 but not remitted by the NNPC to the federation to
$12.9bn.
•ýThe report also revealed that Nigeria lost $518m to offshore processing
arrangements and crude for product swap arrangement in 2013.
•The audit alleged that the NNPC did not remit up to $5bn to the
federation account in 2013.
•The outstanding revenue for 2013 stood at $3.79bn and N358.27bn.
•The exploration arm of NNPC, the Nigeria Petroleum Development Company
(NPDC), did not remit outstanding payments of $1.7bn on the eight oil
mining licenses (OMLs) from the NNPC/SPDC joint venture.
•The NPDC also withheld $414,000 and N249.2 million refunds on OML 26 in
the NNPC/SPDC divested asset. There was an outstanding N2.17bn cash call
refund on OML 42.
•The NPDC also did not remit $763.41 million from its liftings in its JV
with National Agip Oil Company (NAOC), and another $33.21 million from the
SPDC JV, NEITI.
•There were unpaid debts of N351.87bn going by the subsidy approved by the
Petroleum Product Pricing and Regulatory Authority (PPPRA), and an over
recovery of N3.98bn under the petroleum support fund.
•The total losses to the federation account in 2013 were $5.96bn and
N20.42bn, including a $4.74bn in crude oil theft.
•Under-payment or under-assessment of petroleum profit tax and royalties
for 2013 was estimated at nearly $600 million by NEITI.
•Lifting of 950,135 barrels in September from MPN JV (Qua-Iboe Crude Type)
valued at $105,735,773.48 was also traced to an NPDC account, which was
later refunded to the Federation Account in November as follows: 853,000
bbls from the NPDC Shoreline JV (OML 30) and 96,052 bbls from Seplat JV
valued at $103,992,372.90, leaving a value difference of $1,743,400.58.
Shortfall in Federation Account remittance to the tune of $1,743,400.58
Nigerians are awaiting the response of the NNPC to the audit.
Credit: Ventures Africa