Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
Per the submission of NPDC to the Senate, total crude lifted from all assets was 61million bbls
which amounted to $6.82billion. Of this amount, 8million bbls (valued at $886million) was
lifted in favour of SAA and SC partners as their entitlements under the various contracts.
While we were unable to verify the $6.82 billion directly at NPDC, we performed a
recomputation of the values of liftings using information provided by COMD and arrived at a
value of $5.65 billion 68 . These liftings were agreed to DPR lifting information. DPR however
captured an extra 11.5 million bls lifted on behalf of NPDC and its funding partners. Although
the DPR information did not contain necessary pricing information, our value estimation 69 of
the 11.5 million bls was $1.24 billion. Please see table E2 above for summary. Please note that
the DPR valuation is an estimate for comparison purposes only. From the summary in table
E2, we assume that the difference between the lifting value declared by NPDC at the Senate
hearing and our estimate using DPR records, was due to the estimated pricing options we
adopted in assigning values to lifting recorded by DPR for NPDC.
We therefore concluded that NPDC’s position of $6.82 billion was reasonable enough to be
used in our analysis.
4.5.4.3. Cash payments by NPDC to FIRS not captured by Reconciliation
Committee
During our discussions with FIRS, we were informed that NPDC had not been assessed for taxation
purposes for the period January 2012 – July 2013.
NPDC paid $863million in cash to FIRS towards PPT for its crude oil activities during the review
period, based on PPT estimates. These payments were confirmed by FIRS to have been received. We
traced the cash payments by NPDC to CBN/FIRS bank statements with JP Morgan (as summarized in
Table E3 below).
Summary of cash payments made by NPDC to FIRS
Date/period of payments Amount ($)
18-Apr-13 48,000,000
3-Jun-13 48,000,000
21-Jun-13 48,000,000
31-Jul-13 48,000,000
Total payments made between January 2012 and July 192,000,000
2013
Payments made after January 2014 671,000,000
Total payments relating to revenue from NPDC 863,000,000
liftings between January 2012 and July 2013
Table E3 – Summary of NPDC cash payments to FIRS for liftings during period
Vanguardngr
It is important to note that even though these amounts have been paid by NPDC and confirmed by
FIRS, the company needs to be appropriately assessed by FIRS to determine the exact amount due as
PPT from NPDC liftings during January 2012 and July 2013. NPDC communicated an estimated PPT
liability of $1billion at the Senate Hearing (as shown in Table E4 below). We could not verify the
68
Appendix 6.1.1 – Valuation of crude oil revenue (NPDC section)
69
Appendix 6.1.3 – Estimated valuation of extra NPDC liftings captured by DPR
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
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