By Ayomide Otitoju
The withheld funds, covering the period from 2012 to 2024, have significantly impacted the Federation Account, the central pool of funds allocated to federal, state, and local governments.
The FAAC document revealed that the NNPCL recorded transactions worth N27.28 trillion from domestic crude sales within the review period. However, only N13.524 trillion was deposited into the Federation Account, leaving a shortfall of N13.763 trillion.
Additionally, the report highlighted N4.026 trillion as certified subsidy claims, a long-standing issue in Nigeria’s oil sector.
The withheld revenue has raised concerns over transparency, accountability, and financial management by the national oil firm. Recently, the Auditor-General of the Federation accused the NNPCL of diverting N2.68 trillion and $9.77 million over four years. Similarly, the Senate has resolved to probe the NNPCL over N8.4 trillion allegedly withheld as petroleum subsidy payments.
The House of Representatives Public Accounts Committee has also launched an investigation into $1.6 billion in outstanding royalties owed to the Federation Account by the NNPCL and other oil firms.
The Nigeria Extractive Industries Transparency Initiative (NEITI) further accused the NNPCL of failing to remit N3.6 trillion in taxes to the government.
Financial analysts have expressed concerns that the withheld funds could severely impact the Federal Government’s ability to meet budgetary obligations, affecting state and local government finances.
Commenting on the matter, the Centre for Anti-Corruption and Open Leadership (CACOL) described the NNPCL as a hub of institutional corruption, alleging that powerful interests shield the company from scrutiny.
CACOL’s Executive Director, Debo Adeniran, criticized the opacity of the NNPCL’s operations, stating that even the Petroleum Industry Act, designed to decentralize and unbundle the company, has not enhanced transparency.
Despite repeated calls for reforms, the NNPCL’s financial practices continue to raise serious concerns about accountability and governance in Nigeria’s oil sector.
