Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
reasonableness of this estimate as we were not provided with details of NPDC costs within the review
period.
Summary of NPDC’s estimate of PPT accruable to the Federation
Description Liability (US $) Paid ($)
Made up of:
NPDC Traditional assets 525,231,949 440,893,530
Divested assets assigned to NPDC 502,851,116 422,106,470
Total government entitlement 1,028,083,065 863,000,000
Table E4 – Summary of NPDC’s PPT estimates
Source: NPDC Submission to the Senate
4.5.4.4. Cash payments by NPDC to DPR not captured by Reconciliation
Committee
NPDC’s submission to the Senate indicates a total cash Royalty payment of $869million, related to
liftings during the review period. However, DPR submitted 70 to the Senate Committee that $864
million was received.
Cash payments made by NPDC to DPR
Date/period of
payments
Amount ($)
March 2013 71,539,940
April 2013 85,363,271
May 2013 60,159,720
June 2013 6,834,004
October 2013 278,934,251
November 2013 215,910,921
February 2014 120,249,512
Total payments 838,991,619
Table E5 – Summary of NPDC cash payments to DPR for liftings during review period
Of the total $864,817,552 reported by DPR, we were able to trace the above receipts to DPR/CBN JP
Morgan Account; thereby showing an under-remittance of $25,825,934 to the account. In an e-mail
dated 8 October 2014 71 , DPR confirmed to us that the variance of $25.8 million was due to an error of
duplicating the same payment on the schedule provided at the Senate Hearing. The total amount
received from NPDC was therefore not $864 million but $838 million. It is also important to note
NPDC’s assertion that these statutory payments were made on the basis of estimates as summarized
below.
70
Source: DPR’s submission to the Senate
71
See Exhibit E1Vanguardngr
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
PwC 86