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NEITI: NNPC didn’t remit $2bn to FG before transitioning to commercial entity

NEITI: NNPC didn’t remit $2bn to FG before transitioning to commercial entity
September 19
11:53 2023

The Nigeria Extractive Industries Transparency Initiative (NEITI) says the defunct Nigeria National Petroleum Corporation (NNPC) did not remit $2 billion to the federation account in 2021 before transitioning to a commercial venture.

NEITI disclosed this in its 2021 oil and gas report unveiled on Monday in Abuja, according to a NAN.

Orji Ogbonnaya-Orji, the executive secretary of NEITI, said $6.9 billion was also deducted from the federal account allocation committee (FAAC) before the transition.

The corporation had transitioned into NNPC Limited on July 19, 2022, to operate as a commercial entity under the regulation of the Companies and Allied Matters Act (CAMA).

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The move ended its dependence on federal government funding to operate.

Speaking further on the debt to the federal government, Ogbonnaya-Orji said the same year the NNPC failed to remit $2 billion, the oil and gas industry generated $23 billion in revenue.

He said the sales of crude oil and gas, royalties, taxes, bonus and license fees, transportation fees, gas flare, penalty and concession rental, contributed to the turnover.

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Other revenue sources mentioned by NEITI’s executive secretary include dividends from Nigeria LNG Limited (NLNG), Niger Delta Development Commission (NDDC) levy, and the Nigerian Content Development Monitoring Board (NCDMB) levy.

He said the Nigerian export supervision scheme (NESS) fees and miscellaneous income also contributed to the revenue.

Reading the highlight of the report, which covered 69 companies, Ogbonnaya-Orji said out of the total turnover, only $13.2 billion was remitted to the federation account.

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