NNPC denies embezzling N3.2trillion

Dr Emmanuel Ibe Kachikwu

Dr Emmanuel Ibe Kachikwu, Minister of State, Petroleum Resources

Dr Emmanuel Ibe Kachikwu, NNPC MD and Minister of State, Petroleum Resources
Dr Emmanuel Ibe Kachikwu, NNPC MD and Minister of State, Petroleum Resources

The Nigerian National Petroleum Corporation, NNPC has debunked a report by the auditor-general which alleged that it had failed to remit 3.2 trillion naira ($16 billion) in revenues to the government in 2014.

The state-owned company said Samuel Ukura, the auditor was wrong.

Rather, it said, it only owes $1.64 billion.

The auditor-general made the allegations in a report two days ago.

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“NNPC wishes to state in strong terms that the AuGF’s (Auditor General of the Federation’s) declaration is erroneous,” it said in a statement, adding that the auditor-general had failed to account for costs including a fuel subsidy, pipeline vandalism and maintenance.

“Consequently, the figure owed to the Federation Account as at January 2015 Federation Account Allocation Committee (FAAC) meeting report was N326,142,137,205.79 ($1.64 billion)…and not the N3.23 trillion alleged by the AuGF,” said NNPC.

Under the constitution, the Nigerian National Petroleum Corporation (NNPC) must hand over its oil revenue – which makes up about 70 percent of total income – and money is then paid back based on a budget approved by parliament.

But the act establishing the state oil company allows it to cover costs before remitting funds to the government.