The Nigerian National Petroleum Company Limited (NNPC Ltd.) and the Nigeria Extractive Industries Transparency Initiative (NEITI) are engaged in collaborative efforts to reconcile figures presented in the 2021 industry report. The reconciliation process aims to address discrepancies identified in the report and involves all relevant stakeholders.
NNPC has also announced its commitment to working with the Reconciliation Committee established by President Bola Tinubu. This committee is tasked with investigating, reviewing, and reconciling financial records pertaining to the alleged indebtedness of both NNPC and the Federation Accounts Allocation Committee (FAAC), as outlined in the NEITI report.
Femi Soneye, the spokesperson for NNPC Ltd., clarified that during the inception of President Bola Tinubu’s administration, the company was compelled to sell Premium Motor Spirit (PMS) imported into the country at one-third of its value. This decision resulted in a monthly subsidy bill averaging N400 billion, accumulating to a substantial N3.736 trillion as of May 31st, 2023. The subsidy bill placed significant strain on NNPC Ltd.’s revenues and finances.
Regarding gas-to-power debts, Soneye explained that non-payment of NNPC Ltd.’s share of upstream joint venture gas supplied to government-owned plants led to the accumulation of indebtedness amounting to N174.07 billion by the Federation.
The collaboration between NNPC Ltd. and NEITI, along with the involvement of the Reconciliation Committee, underscores the commitment to transparency, accountability, and accuracy in financial reporting within the Nigerian oil and gas sector. As the reconciliation process unfolds, stakeholders anticipate a comprehensive review that addresses concerns raised in the NEITI report and ensures the integrity of financial records associated with NNPC Ltd. and FAAC.
