SCANDAL! NNPC fails to account for missing 107 million barrels of crude oil

SCANDAL! NNPC fails to account for missing 107 million barrels of crude oil

The Nigerian National Petroleum Corporation (NNPC), now NNPC Limited; failed to account for about 107,239,436 barrels of crude oil lifted for domestic consumption in 2019; records from the office of the Auditor-General for the Federation (AuGF); have shown.

This was contained in the “Federal Government of Nigeria consolidated financial statements”; for the year ended December 31, 2019; submitted to the clerk to the National Assembly, via a letter dated August 18, 2021; and signed by the Auditor General, Adolphus Aghughu.


In a similar vein, the performance report of two depots shows that about 22,929.84 litres of PMS, valued at N7.06 billion; pumped to the two depots (Ibadan-Ilorin and Aba-Enugu); between June and July 2019; were not received by the depots.

the amounts reported by NNPC

According to the report, there were discrepancies between the amounts reported by the NNPC, as transfer to the federations account; and what was reported by the AuGF.

For instance, while the NNPC records showed that N1,272,606,864,000.00 was transferred by the corporation; the amount recorded by the Accountant General for the federation; was N608,710,292,773.44; showing a discrepancy of N663,896,567,227.58.

The AuGF said the Group Managing Director of the NNPC, should be asked to explain the discrepancy between the two figures; and remit the balance of N663,896,567,227.58 to the federation account, or face sanctions.

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Also, the sum of N519,922,433,918.46 was transferred to the federation account by the NNPC, based on transfer mandates; while demanding that, the company provide a “reconciliation statement; for the difference of N88, 787, 862, 853.96, between SGF’s figure, of N608, 710, 296, 772.42; and NNPC’s figure per transfer mandate of N519, 922, 433, 918.46.”

It said: “Audit observed that 107,239,436.00 barrels of crude oil were lifted as domestic crude; while the allocation of crude oil to refineries; for a billing date on January 9, to May 29, 2019, was 2,764,267.00 barrels valued at N55,891,009,960.63.”

It further noted that “Information on the sale of un-utilised crude oil by refineries for 2019 was not provided, and information on crude oil allocations from May 30, to December 31, 2019, was not provided for scrutiny.”

diversion of domestic crude

The report alleged possible diversion of domestic crude, diversion of sale of un-utilised crude as well as possible loss of federation account revenue, stating that the management of the NNPC failed to respond to the audit query.

The AuGF said the Group Managing Director of NNPC should justify non-adherence to the transfer of all federation revenue to the federation account as provided by the 1999 Constitution (as amended) and ensure that all revenue is paid into the federation account going forward.

The report also said that “the audit examination on ‘schedule of inflow of revenue’ by NNPC to federation account obtained from the Office of the Accountant General of the Federation revealed that the domestic gas receipts of N4.572 billion was transferred to Federal Inland Revenue Service (FIRS) Petroleum Profit Tax (PPT)-gas in the month of January 2019, and was not made in the subsequent months of the year.

misapplication of fund

“This transfer reduced the amount due to Federation Account for the month of January 2019 to the tune of N4.572 billion” leading to possible “reduction of distributable revenue in the Federation account, misapplication of fund and diversion of revenue.”

It said that about 22,929.84 litres of PMS valued at N7,056,137,180.00 pumped to two depots in the country in 2019 were not received by the depots while no reason was advanced by the agency for the non-receipt of the product, demanding that the value of the products be remitted to the federation account.

It further said that a total of 239,800 barrels of crude oil valued at N5.498 billion was received in Warri and Kaduna refineries respectively between January and December 2019 with the source of the crude not validated due to the absence of source documents, while money was allegedly classified as crude oil losses without duly completed form 146 to be processed for further investigation.


Mele Kyari, NNPC GMD

About The Author

Chuks Ofurum is a staff of 1ST NEWS. He writes the weekly column "The Mouthpiece". [email protected]

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