Reps Probe NNPCL Over $1.6bn Unremitted Royalties
The House of Representatives Committee on Public Accounts on Tuesday launched an investigation into the alleged non-remittance of $1.6 billion in royalties by the Nigerian National Petroleum Company Limited (NNPCL) to the Federation Account.
The probe, led by the subcommittee chairman, Hon. Akinlade Isiaq, follows an Auditor-General for the Federation report that raised concerns over remittances by NNPCL and oil companies.
The report alleged that as of the end of 2021, NNPCL and some oil firms owed $1.6 billion in royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) under the Production Sharing Contract, Repayment Agreement, and Modified Carry Arrangement.
Further findings revealed that NNPCL’s claims against the Federation stood at N1.9 trillion.
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Responding to the queries, NNPCL’s Group Chief Executive Officer, represented by Chief Financial Officer Dapo Segun, said, “Some of the funds were used to finance government priority projects and subsidy payments before the removal of the subsidy in September 2024.”
He explained, “These deductions were from the Federation’s crude oil and gas entitlements and were appropriated to projects captured in the budget as approved by the National Assembly.
“I would like to state categorically that no deductions were made in 2023 and 2024 for government priority projects. Deductions in prior years were subject to the passage of the Petroleum Industry Act (PIA) by the National Assembly.
“With regard to the claims between the Federation and NNPCL as of December 31, 2024, the reconciliation process is still ongoing under the oversight of the Honourable Minister of Finance and Coordinating Minister of the Economy. Once concluded, relevant reports will be made available to all appropriate agencies and stakeholders,” he added.
The subcommittee has vowed to continue its investigation, determine the current status of the debt as of December 2024, and ensure recovery of the funds.
Hon. Akinlade Isiaq reiterated the committee’s commitment to professionalism and transparency in handling the probe, stating, “This hearing is an essential step toward ensuring that Nigeria’s oil and gas resources are managed in a manner that benefits the nation.”
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
