NNPC failed to remit $15.8bn to federation account as at 2014, says NEITI

Nigeria Extractive Industries Transparency Initiative (NEITI) says the Nigeria National Petroleum Corporation had, as at 2014, withheld $15.8 billion from the federation account paid by the Nigeria Liquefied Natural Gas.

In an audit report for 2014, NEITI said NLNG paid $1.42 billion to NNPC as dividends, loan and interest repayments for 2014 but the amount could not be traced to the federation account.

According to the report, which was released by Waziri Adio, NEITI’s executive secretary, Nigeria earned $55.5 billion from the oil and gas sector and N55.82 billion from the solid minerals sector in 2014.

“NLNG paid $1.42 billion to NNPC as dividends, loan and interest repayments for 2014 but the amount could not be traced to the Federation Account,” the report read.

“Between 2005 and 2013, there was an outstanding of $12.92 billion of dividends, interest and loan repayment made by NLNG to NNPC but not remitted to the Federation Account;

“The 2014 audit uncovered evidence of $1.5 billion paid by NLNG to NNPC between 2000 and 2004 but also not remitted. This brings the sum of unremitted NLNG dividends, interest and loan repayment to $15.8 billion as at the end of 2014.

NON-OIL AUDIT

In its audit of its non-oil sector, NEITI said “the audit of the solid minerals sector was conducted by Amedu Onekpe and Co, a Nigerian accounting and auditing firm”.

“The following are the highlights of the solid minerals audit report: Total of 498 companies covered, out which only 39 met the materiality threshold payments of N3 million and above. But these 39 companies accounted for 90.89% of total payments for the sector.

“Dangote Cement accounted for 32.18% of the total N1.2 billion paid as royalties for the sector; Of the 36 million tons produced in the sector, limestone and granite accounted for 56.68% and 30.59% respectively; Increase in coal production from 106,456 tons in 2013 to 127, 467 tons in 2014 about 20%.”