Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
4.4.4.2.3. Inclusion of Quarter 4 2011 discharges in the Subsidy claim for the review period
(January 2012 to July 2013) by NNPC
During our review of NNPC’S supporting documents for the subsidy due between January
2012 and July 2013, we noted the following:
‣ Inclusion of PMS discharges between October 2011 and December 2011 of
2,066,025,835 litres with a computed subsidy of $1,056,426,431.26 48 .
‣ Inclusion of DPK discharges between October 2011 and December 2011 of
198,080,602.56 litres with a computed subsidy of $198,080,602.56. (Please see
Appendix 6.1.24).
Thus, subsidy amount of $1,254,507,033.82 which relates to PMS and DPK discharges
between October 2011 and December 2011, were included in the explanations of PPMC as one
of the reasons for the difference between the revenue realized and remitted into the
Federation Accounts by NNPC between January 2012 and July 2013. This was however stated
by the Reconciliation Committee as $1.2 billion.
Per our discussion with NNPC, we understood subsidy is inherent in the process of
transforming the crude oil lifted through Swap and OPA into finished petroleum products 49 .
Thus, the subsidy claim of Quarter 4, 2011 would have related to crude oil lifting of 2011 and
should not have been added to the subsidy claim between January 2012 and July 2013.
4.4.4.2.4. Summary
Table D3 below is a summary of our comparison of the subsidy computation per the Reconciliation
Committee <strong>Report</strong> and our reviews:
Description
Quarter 4, 2011 PMS &
DPK Discharges
PMS Import and
production between Jan
2012 and Jul 2013
DPK Import and
production between Jan
2012 and July 2013
Rec. Committee
$’Billion
Our Review
$’Billion
Difference
$’Billion
1.2 Nil (1.20)
5.25 5.38 0.13
Vanguardngr
3.52 3.61 0.09
9.97 8.99 (0.98)
Table D3: Comparison of the Reconciliation Committee and 0ur Computation (January 20120 – July 2013). Source:
<strong>Report</strong> of the Reconciliation Committee; PPPRA records of verified import; PwC Analysis
48
Appendix 6.1.24 - Quarter 4, 2011 Discharges included in the <strong>Report</strong> of the Senate Committee on Finance on the
Investigation of the Alleged Unremitted $49.8 Billion Oil Revenue by NNPC
49
Section 3.3.3 Domestic crude oil and revenue flow
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
PwC 70