NEITI: NNPC has not remitted USD 11.6 bln from NLNG

Nigeria Extractive Industries Transparency Initiative has called on President Muhammadu Buhari’s administration to consider the recovery of over $7.5 billion from oil and gas companies operating in Nigeria as a major priority in his economic policy agenda expected to be unfolded very soon.

The amount represents clear cases of underpayments, under-assessments of taxes, royalties, rents etc revealed by NEITI in its several independent audit reports which have not been adequately addressed in the past.

The Executive Secretary, Zainab Ahmed disclosed that a total of $11.6billion which represents outstanding total dividends arising from loans and interest repayments from Federal Government’s investment in the Nigerian Liquefied Natural Gas company also needs to be recovered into government coffers.

“Our 2012 Audit Report discovered that total dividend loans and interest repayment from NLNG paid to the NNPC in 2012 was $2.8 billion, however in the course of NEITI’s Audit NNPC was unable to provide any evidence to provide that the funds were remitted to the federation as required by law. The total amount received by NNPC from NLNG under the same circumstances which have not been remitted to the federation account stands at $11.6billion,” she said.

She advised the new administration to provide the necessary political will required for implementation of the other findings and recommendations contained in NEITI’s independent reports, which she added are quite comprehensive and insightful to guide the government to reform the sector.

NNPC however, wrote a response to NEITI, which was seen by Platts, giving it presidential approval to sequester the NLNG dividend to fund all gas-related projects.

NNPC also informed an inter-ministerial committee was formed to work on reconciling the revenues.

On behalf of the Nigerian government, NNPC holds a 49% equity share in Nigeria LNG.

LNG World News Staff; Image; NLNG