The Federal Government has extended its ongoing investigation into alleged under-remittances by the Nigerian National Petroleum Company Limited (NNPCL) until December 2024, following unresolved discrepancies in revenue payments amounting to $42.37 billion (₦12.91 trillion). The extension, approved by the Federation Account Allocation Committee (FAAC), comes amid mounting pressure to reconcile decades-long gaps in Nigeria’s oil revenue reporting.
According to FAAC documents obtained from its October 2025 meeting, several outstanding payments from major revenue-generating agencies—including NNPCL, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Federal Inland Revenue Service (FIRS)—remain unreconciled. The sub-committee overseeing monthly reconciliation sessions confirmed that a significant portion of the remittance records still contain inconsistencies dating as far back as 2011. To address this, FAAC has directed NNPCL to submit verified remittance figures to replace earlier estimates, while a Technical Reconciliation Committee under the Ministry of Finance continues to review submissions from all agencies.
The under-remittance controversy traces back to findings by Periscope Consulting, a firm hired by the Nigeria Governors’ Forum, which accused NNPCL of withholding crude oil proceeds and statutory revenues between 2011 and 2017. NNPCL reportedly submitted its official response to the allegations on October 10, 2025, after requesting additional time to review the claims. However, FAAC officials disclosed that the company has yet to remit any interim dividends this year, creating a revenue shortfall of over ₦2.17 trillion, contrary to projections that expected monthly contributions of about ₦271.18 billion.
The development comes amid renewed scrutiny from the World Bank, which recently warned that NNPCL’s limited transparency and partial remittance practices pose a serious threat to Nigeria’s fiscal stability. The Bank’s latest report noted that despite the 2021 corporatisation of NNPCL into a commercial entity, the company still retains monopolistic control over crude oil sales and foreign exchange inflows. It revealed that only 50 percent of gains from the removal of the petrol subsidy have been remitted to the Federation Account, leaving a ₦500 billion deficit unaccounted for in 2024.
NNPCL’s Group Chief Executive Officer, Bayo Ojulari, has repeatedly pledged to enhance transparency, efficiency, and accountability within the company. Despite his assurances, the ongoing probe highlights persistent legacy issues that continue to challenge Nigeria’s efforts to ensure full disclosure and accountability in its oil sector. Analysts say the outcome of the extended reconciliation process could significantly influence public trust, government revenue projections, and investor confidence in Africa’s largest oil producer.
source: Punch