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 />
4.2.4.1.4. NPDC remittance<br />
The proceeds due to <strong>NNPC</strong> and hence the Federal Government from total NPDC revenues include<br />
royalties and PPT. NPDC stated in its submissi<strong>on</strong> that a total of $2,175,635,436 was due to the<br />
Federal government, PPT being $1,147,552,371 and Royalties being $1,028,083,065; out of which a<br />
total sum of $1,701,991,619 had been paid to both FIRS and DPR. See detailed work in the secti<strong>on</strong><br />
titled ‘NPDC’ secti<strong>on</strong> 4.5.<br />
4.2.4.1.5. Equity and DPR remittance<br />
The revenue remitted from equity crude proceeds was $14.16 billi<strong>on</strong> 27 ; which was $0.2 billi<strong>on</strong> higher<br />
than the figure reported to the Senate Committee. Also, a total of $1.56 billi<strong>on</strong> 28 was traced to the<br />
CBN/DPR account; which was $0.4 billi<strong>on</strong> lower than the figure reported to the Senate Committee.<br />
These changes were in line with the changes identified from the total revenue generated from each<br />
area.<br />
Total revenue remitted<br />
NATURE<br />
Expected per <strong>NNPC</strong> Remitted per Variance<br />
Analysis<br />
$’Billi<strong>on</strong><br />
$’Billi<strong>on</strong><br />
$’Billi<strong>on</strong><br />
Equity crude 14.0 14.16 0.16<br />
Domestic sales 16.0 14.54 (1.46)<br />
FIRS 15.0 16.0 1.0<br />
DPR 2.0 1.56 (0.44)<br />
NPDC - 1.7 1.7<br />
Third Party Financing - 1.37 1.37<br />
TOTAL 47 49.33 2.33<br />
Table B2– Comparis<strong>on</strong> of total revenue with expected and reported remittances<br />
Source – PwC analysis<br />
4.2.4.2. Amounts not remitted to the Federati<strong>on</strong><br />
4.2.4.2.1. Equity revenue due but not remitted<br />
We noted a variance between the total equity revenue expected to be remitted and the actual<br />
remittances received in the JP Morgan account. A difference of $130 milli<strong>on</strong> 29 was discovered.<br />
SOURCE<br />
Volumes<br />
(bbls)<br />
Values<br />
($)<br />
Vanguardngr<br />
COMD 128,741,037 14,293,600,200<br />
PwC 128,741,037 14,162,976,470<br />
Difference - 130,623,730<br />
Table B3 – Difference in equity revenue generated and remitted<br />
This variance was as a result of various issues noted including; use of credit notes, initial funding<br />
deposits, technical costs, debt servicing and bank charges. All variances were investigated and<br />
c<strong>on</strong>firmed to supporting documentati<strong>on</strong>. See breakdown of costs below<br />
27<br />
See Appendix 6.1.10 – Equity remittance<br />
28<br />
See Appendix 6.1.11 – DPR remittance<br />
29<br />
See Appendix 6.1.12 – Details of unremitted equity revenue<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 55