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NNPC, oil companies owe Nigeria $22.06bn – NEITI

NNPC, oil companies owe Nigeria $22.06bn – NEITI

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Another loss from NNPC was $723,285,929.70 from Offshore Processing Arrangement (OPA) and crude for product swap arrangement.

Uche Usim, Abuja

The Nigerian National Petroleum Corporation (NNPC), the Nigerian Petroleum Development Company (NPDC) and other oil companies operating in the country are yet to remit $22.06 (dollar component) and N481.75 billion (naira component) into the federation account as at end of 2015.

A breakdown of the figures show that oil and gas producing companies are owing $152.69 million and N5.2 billion; while firms involved in Offshore Processing Contracts are yet to remit $498,611,970.89 million.

NPDC for its part, owes $2.38 billion and N51.9 billion, while the NNPC’s debt stands at $19.04 billion and N424.57 billion respectively.

The figures were contained in an audit report NEITI released yesterday in Abuja at a special conference on remedial issues.

READ ALSO: FG, States, others shared N1.9 trillion in 3 months – NEITI

The unremitted figures were discovered by an audit conducted by the Nigeria Extractive Transparency Initiative (NEITI).

According to the report, total losses to the federation account arising from crude oil production, processing and transportation amount to $3.038 billion and N60.997 billion, while unreconciled differences arising from allocation, sale and remittance of proceeds from domestic crude allocated to NNPC amounted to N317.475 billion.

In fuller analysis of the unremitted revenue of oil companies, outstanding debt from the Nigeria Export Supervision Scheme (NESS) stands at $102.196 million and N5,262,949,037, while gas flare penalty was put at $5,676,452. Petroleum Profit Tax stood at $3,414,400, while royalty (oil and gas) was at $96,887,766.99. The Nigerian Content Development and Monitoring Board (NCDMB) levy was $408,942 and N14,752,661. The Niger Delta Development Corporation (NDDC) levy is $46,203,424 and all total $152,693,180.99 and N5,227,701,698.

For the NPDC, gas flare penalty stands at $1,023,174 and N934,024,085; royalty $457,909,445; petroleum profit tax, $1,689,937,133, WHT, N12,540,000,000; VAT, N486,000,000; PAYE, N42,330,334; Education tax, N15,692,422,800; NDDC levy, $81,080,000 and N19,835,000,000; cash-calls paid for transferred OMLs (not refunded), $148,278,000 and N2,420,507,000, which totals $2,378,227,752 and N51,950,284,219.

As regards established losses to the federation, NNPC tardiness cost the country a whopping $90,176,000 and the explanation given in the report says “at the point of remittance into the CBN-NNPC domestic crude oil (naira) accounts by the NNPC, as NNPC based its remittance on another valuation report that used a revised pricing option, which was often lower than the initial valuation.
The national oil company also incurred a loss of N60,997,000,000 as a result of crude and products losses.

Another loss from NNPC was $723,285,929.70 from Offshore Processing Arrangement (OPA) and crude for product swap arrangement.

For its part, the Petroleum Products Marketing Company (PPMC) was responsible for a loss of $1,528,042,054 due to crude oil theft, sabotage and deferred production.

Unreconciled/unexplained difference value of domestic crude allocated to NNPC and the amount remitted to the federation account is N317,475,532.

Other remedial issues from NEITI audits include; unpaid consideration on four OMLs NAOC JV assigned by NNPC to NPDC in 2012, domestic crude allocation and management,  cash call higher than amount appropriated by the National Assembly, no legislation backing gas flare, unreconciled subsidy payments, improper recording of receipts by CBN, among others.

Speaking at the conference, the Executive Secretary of NEITI, Waziri Adio said the meeting was to discuss how the collective resources can be well utilized for the benefits of the citizenry.

READ ALSO: My plans for NEITI – Adio

“We are seeking ways to optimize resources. It’s about improving for the generation coming behind us. We need to get information, data etc. Extractive industries remain major source of government revenue for development,” he said.

Adio however lamented the absence of constitution powers by NEITI to address the remedial issues.

“Remedial issues are too critical to be left with NEITI because it can’t control or sanction defaulters if found. It’s like setting up for failure. We can only call for meetings and plead with the defaulter to comply and play by the rules.

“We need to fix the gaps and address structural issues and others. Remediation is our job and we’ve not done much to address some of these issues because we lack the power and so, some issues keep reoccurring,” he noted.

Kolawole Banwo of the civil society organization in his remarks said the issue of remediation has been talked about severally but needed to be back up by action.

“We need to hit the ground running. We need to achieve set goals. We need to admit that the remedial stage helps resources achieve its purpose. It’s the most practical ways to demonstrate commitment to EITIs,” he stated.

The post NNPC, oil companies owe Nigeria $22.06bn – NEITI appeared first on The Sun Nigeria.

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