A renewed dispute has erupted between the Nigerian National Petroleum Company Limited and Periscope Consulting, the audit firm engaged by the Nigeria Governors’ Forum, over alleged unremitted oil revenue amounting to $42.37bn (about N12.91tn) for the years 2011–2017.
Fresh claims and counterclaims from both sides have prompted the Federation Account Allocation Committee to order a joint reconciliation meeting to establish the true status of the disputed funds. This directive was revealed in FAAC’s post-mortem report for November 2025, obtained on Tuesday.
In October, The PUNCH reported that FAAC extended its probe into remittances by revenue-generating agencies—including NNPCL—to December 2024 due to unresolved inconsistencies. The extension also covered allegations that NNPCL failed to remit $42.37bn in crude oil earnings during the 2011–2017 period.
Periscope Consulting’s review accused NNPCL of withholding crude sale proceeds and statutory revenues that should have been paid into the Federation Account. But in the latest document, FAAC’s sub-committee confirmed that NNPCL rejected the audit findings, insisting that all revenue due to the Federation was fully remitted.
Periscope, however, maintains that its audit exposed major gaps, insisting the alleged shortfall remains unresolved.
The FAAC report stated:
“NNPCL responded that all revenues due to the Federation have been properly accounted for… Periscope Consulting disagreed, hence the sub-committee directed a joint meeting to close out the issue. The exercise is still ongoing.”
This impasse adds to years of friction between state governments and the national oil company over transparency in oil revenue flows. As recently as February 2025, FAAC suspended its monthly meeting amid disputes over alleged unpaid remittances estimated at N1.7tn.
Governors have long complained that NNPCL’s revenue practices—particularly in crude sales, domestic allocations, subsidy deductions, and JV cash calls—lack clarity. With FAAC allocations forming the financial backbone of states and local governments, any suspected shortfall deepens fiscal strain amid rising inflation and shrinking revenues.
NNPCL, now operating as a limited liability company under the Petroleum Industry Act, has defended its processes, arguing that independent auditors often misunderstand the regulatory and commercial frameworks guiding its operations.
Emeritus Professor of Petroleum Economics, Wumi Iledare, described the alleged unremitted $42.37bn as a “legacy problem” tied to inefficiencies in the pre-PIA regime. He stressed that full implementation of the PIA, real-time monitoring, and continuous independent audits are essential to preventing such disputes.
Meanwhile, FAAC’s sub-committee has raised concerns about NNPCL’s reporting on the 30% Frontier Exploration Fund. Although NNPCL submitted utilisation records from 2008–2024, the committee noted a lack of project-specific details and requested further reconciliation. That process is still pending.
FAAC also reviewed outstanding liabilities owed by NNPCL to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission between June and December 2023. The arrears—totalling N2.03tn—are being reconciled by the Stakeholders Alignment Committee.
Adding pressure, the World Bank has repeatedly criticised NNPCL for not fully remitting oil revenues, warning that such gaps undermine fiscal transparency and macroeconomic stability. It noted that in 2024, NNPCL remitted only N600bn out of N1.1tn in post-subsidy revenue gains, withholding the remainder to offset arrears.
Despite assurances from NNPCL Group CEO Bayo Ojulari of improved transparency and accountability, lingering allegations of multi-billion-dollar under-remittances continue to cast doubt over the company’s financial reporting practices.
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