NNPC says it’s owing FAAC N326 billion not N3.2 trillion

The Nigerian National Petroleum Corporation (NNPC) has debunked claims made by the Auditor General of the Federation (AuGF) that it failed to remit the sum of N3.2 trillion to the Federation account for 2014 fiscal year claiming the figure is N326 billion.

In a statement by the Group Executive Director/Chief Financial Officer (Finance & Accounts), Isiaka Abdulrazaq, the NNPC said NNPC said the proceeds from the sale of 445,000 barrels per day crude allocated to it for processing into petroleum products are remitted to the federation account after deducting the cost associated with the supply and distribution.

NNPC said the AuGF figures did not take into account such as subsidy claims, crude oil losses from activities of vandals against the pipelines and repair costs for the refineries.

Subsidy claims approved by the Petroleum Profits and Pricing Regulatory Agency for the period January 2012 to December 2014 was N2.34 trillion. An additional N7.96 bn subsidy claim is still under reconciliation according to the statement.

It put losses from crude oil and petroleum products as a result of vandalism on its network of pipelines for the period January 2012 to December 2014 at N202.68 billion.

NNPC also stated that it paid for petroleum product strategic holding cost and pipeline repairs and maintenance cost for the same period in the amount of N358.88 billion.

NNPC also said it has claims of up to N1.374 trillion against the Federation which is currently being re-viewed by the finance ministry.

“It is clear that the AuGF failed to reflect all the figures as they should be, not minding the fact that there is a clear process in conducting FAAC meetings where all Federation revenues are presented, discussed and approved,” the statement stated.

Auditor General of the Federation Samuel Ukura had on Monday in an audit report presentation to the National Assembly alleged that the NNPC has failed to remit the sum of N3.235 trillion to the Federation Account for the period ended 31st December 2014.

 

ISAAC ANYAOGU