The Federal Government has extended its probe into NNPCL and other key agencies over unremitted revenues until December 2024.
The move follows unresolved discrepancies and a $42.37 billion underpayment allegation against NNPCL.
The Federal Government has extended the ongoing probe and reconciliation of payments made by revenue-generating agencies, including the Nigerian National Petroleum Company Limited (NNPCL), until December 2024, amid unresolved discrepancies in remittances to the Federation Account.
This decision followed the NNPCL’s submission of its response to allegations of under-remitting $42.37 billion (approximately ₦12.91 trillion) between 2011 and 2017.
According to documents from the October 2025 meeting of the Federation Account Allocation Committee (FAAC), the extension was approved after the sub-committee on reconciliation reported that several outstanding payments remained unresolved.
The document revealed that payments made before June 2023 have been forwarded to the Stakeholders Alignment Committee for further verification. To ensure accuracy, NNPCL has been directed to provide actual remittance figures to replace earlier estimates.
“The second phase of the reconciliation has been extended to December 2024,” the report noted, adding that the committee is awaiting the findings of the Technical Reconciliation Committee convened by the Ministry of Finance.
FAAC records show that about ₦1.02 trillion and $137.84 million remain unreconciled across key agencies, including the NNPCL, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Federal Inland Revenue Service (FIRS). While there was no dollar discrepancy directly under NNPCL, the company and NUPRC jointly owe ₦733.19 billion, with another ₦296.25 billion linked to gaps between FIRS and NNPCL.
The extension follows months of disputes between fiscal authorities and NNPCL over non-remitted revenues. The oil company’s alleged underpayment was first raised by Periscope Consulting, a firm commissioned by the Nigeria Governors’ Forum to review revenue shortfalls from 2011 to 2017. The firm accused NNPCL of withholding oil proceeds due to the Federation Account.
In its defense, NNPCL submitted a written response on October 10, 2025, which is currently under review by an ad hoc committee set up to examine the company’s claims.
Compounding the issue, FAAC records indicate that NNPCL has not remitted any interim dividends into the Federation Account this year. The company was expected to contribute ₦271.18 billion monthly, totaling ₦2.17 trillion so far, but no payment has been made.
The World Bank recently criticized NNPCL for retaining large portions of oil revenue, arguing that the practice undermines transparency and macroeconomic stability. The bank stated that while the firm has been corporatized, it still maintains monopolistic control over crude sales and foreign exchange inflows, leading to persistent gaps between earnings and remittances.
According to the World Bank, NNPCL has only been remitting half of the proceeds from the removal of the petrol subsidy, transferring ₦600 billion out of ₦1.1 trillion generated in 2024 and using the remainder to offset arrears.
NNPCL Group Chief Executive Officer, Bayo Ojulari, has repeatedly pledged to maintain transparency, accountability, and efficiency in the company’s operations. However, longstanding issues surrounding past under-remittances amounting to tens of billions of dollars continue to raise concerns about the company’s fiscal compliance and transparency.
