The Federal Government has extended the NNPCL under-remittance probe to December 2024 following unresolved discrepancies in revenue remittances by several key agencies, including the Nigerian National Petroleum Company Limited (NNPCL).
The extension, approved by the Federation Account Allocation Committee (FAAC), is part of an ongoing reconciliation of payments made by revenue-generating agencies to the Federation Account.
According to government documents reviewed from the October 2025 FAAC meeting, the move became necessary after the discovery of persistent mismatches in reported figures.
NNPCL Under-Remittance Probe Deepens as Government Demands Transparency
The extension comes amid the NNPCL’s formal response to allegations that it failed to remit $42.37 billion (about N12.91 trillion) between 2011 and 2017.
The revelation, first made public through a forensic audit commissioned by the Nigeria Governors’ Forum (NGF), accused the company of withholding crude oil proceeds and other statutory revenues due to the Federation Account.
Documents indicate that while some agencies have partially reconciled their payments, a significant portion remains outstanding.
The FAAC report stated that, “The outstanding amounts are still being reconciled at the monthly meetings between the sub-committee and the revenue agencies.
Furthermore, the payments due before June 2023 have been referred to the Stakeholders Alignment Committee for further scrutiny.”
The FAAC Sub-Committee on Reconciliation also confirmed that the technical reconciliation process will now run until December 2024.
The NNPCL has been mandated to submit its actual remittance figures to replace earlier estimates submitted to the government.
Unresolved Revenue Discrepancies and Fiscal Gaps
A breakdown of the ongoing NNPCL under-remittance probe revealed that approximately N1.02 trillion and $137.84 million remain unreconciled across major agencies.
The figures involve the NNPCL, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Federal Inland Revenue Service (FIRS).
While no dollar-denominated remittance gap was recorded under NNPCL’s direct account, the firm, alongside NUPRC, still owes an outstanding N733.19 billion, while another N296.25 billion discrepancy was traced to transactions between the FIRS and NNPCL.
Further unresolved balances of $69.03 million and $68.02 million were linked to the Central Bank of Nigeria (CBN), FIRS, and NUPRC.
FAAC officials confirmed that a technical team under the Ministry of Finance has been tasked with harmonising all figures and identifying the source of the variances.
“The Sub-Committee awaits the final report of the Technical Reconciliation Committee convened by the Ministry of Finance,” the document read.
World Bank Raises Concerns Over Revenue Leakages
The World Bank has also expressed concern over what it described as “persistent revenue leakages” at the NNPCL, warning that incomplete remittances continue to undermine fiscal transparency and macroeconomic stability.
In a recent report, the global lender stated that despite the NNPCL’s corporatisation in 2021, the firm still operates with a near-monopoly over crude oil sales and foreign exchange inflows.
This, the Bank said, has created wide disparities between declared revenues and actual remittances.
According to the World Bank, the NNPCL has only remitted 50 per cent of gains from the removal of petrol subsidy to the Federation Account.
Out of an estimated N1.1 trillion in crude sales and other income recorded in 2024, only N600 billion was reportedly transferred, leaving a N500 billion deficit.
“Despite the full removal of the petrol subsidy in October 2024, the NNPCL only began remitting revenues in January 2025.
Since then, it has remitted half of the total gains while using the remainder to offset previous arrears,” the Bank’s report noted.
FAAC Records Show NNPCL’s Missed Dividend Payments
FAAC’s records further showed that NNPCL was expected to remit N271.18 billion monthly in interim dividends — a total of N2.17 trillion year-to-date — but has failed to make any payments so far in 2025.
The shortfall has widened the Federal Government’s fiscal deficit and limited the amount shared among the three tiers of government.
Economic analysts say the NNPCL under-remittance probe could reshape Nigeria’s oil revenue accountability framework if followed through with transparency.
However, they warn that delays in reconciliation may worsen cash flow constraints for states and local governments.
Ojulari Pledges Reform Amid Legacy Challenges
NNPCL’s Group Chief Executive Officer, Bayo Ojulari, has repeatedly pledged to enhance transparency, efficiency, and accountability in the company’s operations.
Since assuming office, Ojulari has promised to make the company’s books publicly auditable and compliant with all fiscal rules.
However, legacy issues and historical under-remittance claims — especially those dating back to the pre-corporatisation era — continue to cast a shadow on the company’s reputation.
Industry observers argue that the outcome of the NNPCL under-remittance probe could determine the credibility of ongoing fiscal reforms under the current administration, which aims to improve revenue mobilisation and reduce leakages across key sectors.
The extended deadline to December 2024 signals the government’s intention to complete a comprehensive reconciliation of all pending accounts.
Stakeholders, including the Federal Ministry of Finance, the Office of the Accountant-General of the Federation, and state finance commissioners, are expected to review final reports before year-end.
Analysts insist that ensuring full disclosure of oil revenues and enforcing remittance compliance remain vital to Nigeria’s economic stability.
With crude oil still accounting for nearly 70 per cent of total government revenue, the success of the NNPCL under-remittance probe will be a defining moment for Nigeria’s quest for fiscal transparency.
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