February 25, 2024

NNPC contributes N1.55tn to Federation Account in 2020, 2021 – Report 

Dr. Orji Ogbonnaya Orji, ES NEITI

Oredola Adeola

The Nigerian National Petroleum Company (NNPC) Limited contributed a total of N1.55 trillion to the Federation Account in 2020 and 2021, representing 10% of N14.38 trillion total revenue generated in the period under review, the Nigerian Extractive Industries Transparency Initiative (NEITI) 2020-2021 Fiscal Allocation and Statutory Disbursement (FASD) Industry report has shown.

Dr. Orji Ogbonnaya Orji, Executive Secretary, NEITI, made this known while delivering brief of the 2020-2021 NEITI Fiscal Allocation and Statutory Disbursement (FASD) Industry report in Abuja on Thursday.

The breakdown of the report analysed by EnergyDay showed that the Nigerian National Petroleum Corporation now NNPC Limited, remitted a total of N1.07trillion and N447.7bilion in 2020 and 2021 respectively.

According to the report, the NNPC remitted a total of N1.55trillion representing 10 percent of N14.38 trillion a total revenue generated and remitted to the Federation Account in the period under review.

The report showed that the total remittance by the NNPC to FAAC in 2020 dropped from N1.07 trillion, by N597,536billion (55.93%) to N477.7 billion in 2021.

The report further showed that the now defunct Department of Petroleum Resources (DPR) which has now been unbundled into Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) remitted a total of N953.37 billion and N1.75 trillion in 2020 and 2021 respectively, translating to a total of NN2.7 trillion representing 18.83 percent of the total revenue remitted to FAAC in the period under review.

Federal Inland Revenue Service (FIRS) remitted to FAAC the sum of N1.12 trillion and N1.01 trillion in the period under review, translating to a total of N2.13 trillion representing 14.81 percent of the total revenue.

While Solid mineral remitted N5.49billion and N7.84bn in 2020 and 2021 respectively, to FAAC which is about 0.09 percent of the total amount remitted from the oil, gas and mining sectors in the period under review.

Speaking during his keynote address Dr. Orji stated that 2020-2021 NEITI Fiscal Allocation and Statutory Disbursement (FASD) Industry report tracks revenues derived from Oil, Gas and Mining Industry with specific focus on utilisation.

He further emphasised that the FASD report provides information and data on how these revenues were shared during the period under review, who received what and how the remittances were deployed and utilized to achieve the purposes for which they were allocated.

Dr. Orji explained that NEITI is particularly interested in the information and data on the revenues either shared or allocated and how both helped government at all levels to address the numerous national development issues especially, poverty reduction.

According to him, “The Report covered FAAC allocations to the three tiers of government and other statutory recipients including those agencies that received allocations and a total of sixty-nine (69) companies and the Nigeria Liquefied Natural Gas (NLNG).

He further mentioned that thirteen (13) Government Entities and One (1) State Owned Enterprise which is the NNPC Ltd.

He highlighted that the report reviewed processes and transactions within the sector. It looked at independent assessment of financial transactions in the areas of revenue receipts and payments and how the processes weighed on the scale of transparency and accountability in the oil and gas sector during the period under review.

“Other areas that NEITI focused on, in this report, were projects executed, deployment to capital projects and recurrent expenditure and how these aligned with the core responsibilities of the agencies, government and citizens expectations. Orji revealed.

While commending the President Bola Tinubu’s administration and his predecessor for providing the resources for NEITI to undertake the report and other similar projects, Dr Orji called on the President to recall the immediate past NEITI National Stakeholders’ Working Group (NSWG) led by a renowned public servant Barr. Olusegun Adekunle or reconstitute a new Board.

He emphasised that the absence of the NSWG, as the official body to co-ordinate the implementation of the EITI principles in Nigeria, has created a vacuum.

The NEITI Boss noted that NEITI needs the steering group to enhance accountability and transparency in the Extractive Industries and in Government.

Engr. Farouk Ahmed, the Chief Executive Officer, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) who was represented by Mr Mukaila Oseni, stated that NEITI has over the years enhanced its significance and roles as the only agency monitoring, evaluating and validating EITI Country implementation in Nigeria.

He stated that NEITI has being demanding accountability and transparency from all stakeholders in the oil and gas industry in Nigeria, therefore putting all of them on top of their toes to ensure compliance to public scrutiny.

Engr. Farouk said Nigerians deserved to be served and also required transparency from every stakeholder in charge of the country’s mineral resources.

He therefore emphasised that the NMDPRA is concerned about setting the rules of engagement to spur industry growth, promising to continue to partner with NEITI to ensure shared prosperity for Nigeria in the oil and gas sector.