NEITI Audit Report Exposes Fresh N2.23tr Fraud In NNPC

NNPCThe Nigerian Extractive Industries Transparency Initiative (NEITI) audit report of Nigeria’s oil and gas as well as solid minerals sectors for 2013, has been published.
Chairman of the NEITI Board and Minister of Solid Minerals, Kayode Fayemi, who unveiled the report of the audit on Monday in Abuja, said it (audit) focused on all aspects of the extractive industries.
According to the minister, the report indicates that in 2013, the total revenue inflow into the Federation Account from the oil and gas sector was about $58.07 billion – an eight per cent decline when compared to the $62.9 billion the previous year (2012).
Mr. Fayemi attributed the decline to drop in oil and gas sales following divestment of federation equity in some oil mining leases, OMLs, crude oil losses as a result of destruction of production facilities, pipelines vandalism and crude oil theft.
Details of the report also showed that the Nigerian National Petroleum Corporation, NNPC and its sub-units during the year, either lost or refused to remit a total of N2.23 trillion, consisting $9.75 billion and N378.67 billion, to the federation account as revenues from various aspects of its operations in 2013.
Aside the outstanding revenues from NNPC, the minister citing the report, said that the sums of $5.966 billion and N20.4 billion revenues were denied the federation due to crude oil swap deals and crude oil theft.
Another area of interest in the report is the loss of $599.8million as a result of under-payments of petroleum profit taxes and royalties by oil and gas companies.
The audit also revealed that the Nigeria Liquefied Natural gas (NLNG) paid the sum of $1.289 billion as dividends, interest and loan repayment for 2013.
However, while NNPC acknowledged receipt of the amount, it failed to remit the money to either the federal government or the Federation.
The amount brings to a total of $12.9 billion the total NLNG payments received by NNPC between 2005 and 2013 but not remitted by NNPC to the federal government, the report showed.

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