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NNPC Owes Federation Account N4.9tn – RMAFC

As the figures not remitted by the Nigerian National Petroleum Corporation (NNPC) to the federation account continues to generate controversies, the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) on Monday puts the amount owed the Federation Account at N4.9 trillion.

RMAFC said the huge amount was between 2011 and 2015.

While this is different from the figure given by the Auditor General during his recent report before the senate, RMAFC nonetheless believed its figure was correct and did not contradict the earlier report.

It could be remembered the Auditor General of the Federation said the corporation failed to remit N3.2 trillion into the federation account in 2014 alone.

In justifying its report, the RMAFC said the auditor general’s report only relied on the 2014 Annual Audit Report obtained from the records of the Federation Accounts Allocation Committee (FAAC)’s Technical Sub-Committee on Domestic Crude Oil Sales and reconciliation statement as contained in the NNPC’s mandate to Central Bank of Nigeria (CBN), hence the N3.2 trillion figure.

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It said its report was based on available records at its disposal that indicated N4.9 trillion was the actual amount being owed the federation by NNPC as at 2015.

In a statement issued and signed by its spokesman, Mr. Ibrahim Mohammed and made available to journalists, RMAFC said the corporation owed the federation account N1.99 trillion in 2014 from domestic crude sales in addition to the N3.2 trillion owed the Federation Account in 2014 from domestic crude sale as claimed by the Auditor-General.

It however speculated without giving actual assurances where and how the Auditor-General got his figures from but argued it must have included revenues from other sources.

This would no doubt raise fresh dust why government agencies cannot give unified and accurate figures concerning duties and responsibilities in their domain.

Similarly, the RMAFC said the NNPC’s payment of $235 million realised from the sale of Natural Gas into an undisclosed Escrow Accounts was as a result of agreements NNPC entered on behalf of the NLNG with three International Oil Companies (IOCs) including Nigeria Agip Oil Company (NAOC), Shell Petroleum Development Company of Nigeria (SPDC), and Total E&P Nigeria Limited (TEPNG).

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It said the agreements were under a Modified Carry Agreement (MCA) proceeds from which funds for various projects are deposited in Escrow Accounts with regards to the various Gas projects under the LNNG.

It pointed out that the total amount transferred to the various accounts from 2012 to November 2015 was $1.615 billion.

According to the RMAFC, it has made several demands  through the FAAC Post Mortem, for the NNPC to make available updated financial statements on the projects, but the corporation has failed to accede to the request.

It said while a tripartite meeting involving the corporation, the Federal Ministry of Finance (FMF) and RMAFC  would lead to a forensic audit to determine who owes what, it was necessary such a step was undertaken in view of controversies being generated due to subsidy and other claims by NNPC.