Nigeria’s state oil company failed to disclose $16bn revenue in 2014, auditor general says

Nigeria’s state-owned oil company NNPC withheld N3.2 trillion ($16 billion) which it was supposed to remit to the federal government in 2014, the auditor-general said on Monday as he presented the 2014 Annual Audit Report to the parliament.

“Amount not remitted to FAAC was N3,234,577,666,791.35,” the auditor-general Samuel Ukura said in his report.

The failure of the Nigerian National Petroleum Corporation (NNPC) to remit the said fund is against the constitution which directs that the company must hand over all oil revenue to the government. The revenue accounts for about 70 percent of total income; money is then disbursed to government agencies based on a budget approved by parliament.

Then central bank governor, Lamido Sanusi, was in 2014 suspended after accusing the NNPC of failing to remit $20 billion into government accounts between January 2012 and July 2013.

According to Ukura, his report was based on an “examination of NNPC mandates to CBN (Central Bank of Nigeria) on Domestic Crude Oil Sales and Reconciliation Statement of Technical Sub-committee of Federation Account Allocation Committee (FAAC) meeting held in January 2014”.

The report also stated that $235,685,861, being gas sale proceeds accruable to the Nigeria Liquefied Natural Gas, was also not paid to the federation account, but rather, transferred to some undisclosed Escrow Accounts.

The NNPC is yet to react to the report.