Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
3.1. Detailed Timeline of Events
The assignment follows a timeline of events beginning with a letter in September 2013 by the former
Governor of CBN, HRH Mallam Sanusi Lamido Sanusi to the President of the Federal Republic of
Nigeria, Dr Goodluck Ebele Jonathan (GCFR) stating (among other allegations), that from January
2012 to July 2013, NNPC had lifted $65bn worth of crude on behalf of the FGN but remitted only
$15bn, with $49.8bn outstanding. The history of allegations is shown in the table below:
Date
Event
25 September 2013 Sanusi Lamido Sanusi, former CBN Governor, writes a letter to the President stating
that from January 2012 – July 2013, NNPC had lifted $65bn worth of crude on behalf
of the FGN but remitted only $15.2bn, thus $49.8bn was outstanding.
13 December 2013 The former GMD NNPC (Andrew Yakubu) responds that no money is missing. A
revenue reconciliation meeting was set up by the FGN to look into the allegations.
The meeting had representatives from:
(i) CBN (ii) NNPC (iii) Department of Petroleum Resources (DPR)
(iv) Federal Inland Revenue Service (FIRS)
(v) Office of the Accountant General of the Federation (OAGF)
(vi) The Budget Office of the Federation
(vii) Federal Ministry of Finance
(viii) Federal Ministry of Petroleum Resources.
18 December 2013 After the reconciliation meeting, a joint press statement was issued by all the parties
as follows:
Actual value of crude lifted over the period was $67bn which was accounted for as
follows:
(i) Revenues which directly accrued to NNPC (for the Federation Account) of $14bn
(ii) Additional revenues lifted by NNPC on behalf of other parties as follows:
- FIRS ($15bn) - DPR ($2bn)
- NPDC ($6bn) - Other third party financing ($2bn)
(iii) Domestic crude lifted by the NNPC ($28bn)
The Ministry of Finance acknowledged that all crude lifted was remitted apart from
domestic crude remittances with a shortfall of $10.8bn, made up of:
i)Unpaid subsidy claims – USD 8.77billion
(ii)Holding costs of strategic reserves – USD 0.46billion
(iii)Crude oil and product losses – USD0.76billion
(iv)Pipeline and management costs – 0.91billion
CBN Governor stated that the shortfall is $12bn because, of the $28bn due from the
domestic crude, NNPC had only remitted $16bn. NNPC insisted that the shortfall is
$10.8bn and the difference was due to $1.2bn subsidy payments it claimed to have
made between Jan-Mar 2012 (relating to October – December 2011 discharges), and
which had been certified by the PPPRA. CBN did not recognize it as no documents
were provided by NNPC to support the explanation.
Vanguardngr
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
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