Governors, NNPC in Fresh Row Over Alleged $42bn Shortfall
Tensions have resurfaced between the Nigerian National Petroleum Company Limited and Periscope Consulting, the audit firm hired by the Nigeria Governors’ Forum, over claims that NNPCL failed to remit $42.37bn (about N12.91tn) in oil revenue to the Federation Account between 2011 and 2017.
Fresh submissions from both parties, highlighted in FAAC’s November 2025 post-mortem report, have prompted the committee to order a joint reconciliation meeting to verify the true status of remittances and resolve the long-running dispute.
Periscope Consulting’s audit had accused the national oil company of withholding crude proceeds and other statutory revenues. But NNPCL, in its latest response, insisted that all revenues due to the Federation for the period were fully remitted and that no outstanding balances exist.
The consultants rejected this position, maintaining that significant gaps remain in the company’s remittance records. The FAAC sub-committee, citing the conflicting claims, directed both sides to reconcile their accounts and “close out” the issue, noting that the process remains ongoing.
The controversy adds to the broader struggle between state governments and NNPCL over transparency in oil revenue flows. In early 2025, a similar disagreement over an estimated N1.7tn in remittances disrupted FAAC proceedings and threatened states’ fiscal stability.
NNPCL’s operations during the pre-Petroleum Industry Act era have also been criticised. Petroleum economist Wumi Iledare attributed the unresolved discrepancies to the old system’s overlapping roles, describing the issue as a legacy problem that requires strict PIA implementation, real-time monitoring, and continuous independent audits to prevent future disputes.
Further scrutiny from FAAC revealed gaps in NNPCL’s reporting on the 30 per cent Frontier Exploration Fund, with the committee demanding project-specific expenditure details for exploration activities conducted across Nigeria’s frontier basins. NNPCL is yet to provide the updated breakdown.
FAAC is also reconciling N2.03tn in outstanding liabilities owed by NNPCL to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission between June and December 2023. The liabilities include N1.19tn in royalties and N843.28bn in taxes, with the highest obligation recorded in August 2023.
The World Bank has also faulted NNPCL’s remittance practices, accusing the company of withholding a portion of oil revenue gains since the removal of petrol subsidy. According to the bank, NNPCL remitted only N600bn of the N1.1tn generated in 2024, retaining N500bn to settle past arrears. It added that remittances only began in January 2025 despite the full removal of subsidy in October 2024.
Despite repeated assurances of transparency from Group CEO Bayo Ojulari, legacy audit challenges and persistent claims of under-remittance continue to overshadow NNPCL’s reform efforts.
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