Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
G
H
I
Amount Due
($52.88billion)
Other costs not
directly
attributable to
domestic crude
oil ($2.81billion)
Expected
remittance
($50.07billion)
NNPC (PPMC) does not claim subsidy retrospectively as done by other
marketers. PPMC buys 445,000 bpd of domestic crude oil from the FGN.
PPMC is expected to pay for the domestic crude oil 3 months after the
purchase from the FGN. This period is to allow PPMC convert the crude oil to
refined products, sell the refined products, and pay the FGN for the crude
purchased, from the proceeds of sale of the refined products 4 . However, NNPC
(PPMC) sells the refined products at a subsidised amount, and pays the FGN
for the crude purchased less subsidy incurred during the sale of the refined
products.
Amount expected to be remitted to the Federation after deducting the total
verified costs from the total revenues from crude lifting. i.e., C-D-E-F.
After the submission of our initial report to the <strong>Audit</strong>or-General for the
Federation on 28 November 2014, these costs were brought to our attention by
NNPC; stating that it had understated its costs in the submissions made to the
Senate Committee and had not included all the costs defrayed from the
proceeds of domestic crude revenue in meeting its mandate in accordance with
the NNPC Act. These costs comprise of what was incurred by NNPC and its loss
making subsidiaries.
Vanguardngr
We obtained physical records of these costs and compared them to the Group’s
accounting records on SAP.
This is the total amount of revenue expected in the Federation Account after
deducting H from G.
4
Obtained from discussions with NNPC and Revenue Mobilisation and Fiscal Allocation Commission
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
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