NNPC fails to remit N77.92billion into federation account, says NEITI
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NNPC fails to remit N77.92billion into federation account, says NEITI

- Crisis may be brewing in the Nigerian oil and gas industry

- NIETI has accused the NNPC of under-remitting N77.92billion to the federation account in 2017

- The report which is pilot study on the sale of crude oil, however, noted that there is an ongoing reconciliation of the amount

The Nigerian Extractive Industries Transparency Initiative (NEITI) on Thursday August 22 accused the Nigerian National Petroleum Corporation (NNPC) of under-remitting N77.92billion to the federation account in 2017.

In a statement endorsed by its director, communications and advocacy, Dr Orji Ogbonnaya Orji, NEITI said: “N77.92 billion was under-remitted by NNPC to the federation account from domestic crude allocation in 2017.”

NNPC acknowledges the under-remittance and states that there is an ongoing reconciliation to net off the N77.92 billion from “the established federation indebtedness to the corporation of N797billion arising arising from KPMG forensic audit of the corporation at the instance of the federation.”

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It said the total revenue from sale of federation share of oil and gas for 2017 was $14.5 billion—$13.18 billion or 90.8 per cent from crude oil and $1.32 billion or 9.1per cent from gas.

The report said the NNPC, deducted N297 billion from earnings from the Domestic crude allocation as costs and losses, broken down as follows: N141.6 billion for under-recovery on petroleum products; N25 billion for crude and product losses; and N130.4 billion for pipeline repairs and maintenance.

The report said it showed that while there was a slight improvement on the figure for 2016 (a year characterized by vandalism and sabotage of oil facilities), crude production for 2017 was about a fifth less than the 2015 level.

The report which is pilot study on the sale of crude oil, however, noted that there is an ongoing reconciliation of the amount that arose from KPMG forensic audit.

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Meanwhile, stakeholders in the oil sector have expressed fear that the next four years might offer little grounds for optimism

This is due to the retention of the petroleum minister portfolio by President Muhammadu Buhari on Wednesday, August 21.

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Source: Legit.ng

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