Audit-Report-on-NNPC
Audit-Report-on-NNPC
Audit-Report-on-NNPC
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Investigative Forensic audit of crude oil revenues and remittances by <strong>NNPC</strong> (January 2012 – July 2013)<br />
Date<br />
Event<br />
4 February 2014 The CBN Governor appearing before the Senate Committee <strong>on</strong> Finance stated that<br />
<strong>NNPC</strong> needs to account for $20bn discounting some of the initial explanati<strong>on</strong>s<br />
provided by <strong>NNPC</strong> (the lifting in favour of NPDC, other third party financing and<br />
certified subsidy claims). The Governor stated that out of the $67billi<strong>on</strong> worth of<br />
crude oil lifted by the <strong>NNPC</strong>, <strong>on</strong>ly $47billi<strong>on</strong> had been appropriately accounted for as<br />
follows:<br />
<strong>NNPC</strong> payment for FGN crude - $14bn<br />
FIRS crude<br />
- $15bn<br />
Domestic crude<br />
- $16bn<br />
IOC payment(Royalty) - $2 bn<br />
Total<br />
- $47bn<br />
13 February 2014 The <strong>NNPC</strong> accounted for the $20bn shortfall as follows:<br />
S/N Descripti<strong>on</strong><br />
$billi<strong>on</strong><br />
1 NPDC 6<br />
2 Other third party financing 2<br />
3 Jan – Mar 12 certified subsidy 1.2<br />
4 DPK subsidy 3.5<br />
5 PMS subsidy 5.25<br />
6 Crude oil product losses 0.76<br />
7 Maintaining the strategic reserves 0.46<br />
8 Pipeline maintenance and management costs 0.91<br />
Total 20.08<br />
The Minister of Finance and Coordinating Minister of the Ec<strong>on</strong>omy, recommended<br />
that there should be an independent forensic audit of the amounts c<strong>on</strong>stituting the<br />
$10.8bn as stated <strong>on</strong> 18 December 2013.<br />
Vanguardngr<br />
C<strong>on</strong>fidential informati<strong>on</strong> for the sole benefit and use of the <str<strong>on</strong>g>Audit</str<strong>on</strong>g>or-General for the Federati<strong>on</strong>.<br />
PwC 33