NNPC, Auditors Clash Over $42bn Oil Revenue Shortfall

NNPC, Auditors Clash Over $42bn Oil Revenue Shortfall

A renewed dispute has erupted between the Nigerian National Petroleum Company Limited and audit firm Periscope Consulting over an alleged $42.37 billion (approximately ₦12.91 trillion) oil revenue shortfall to the Federation Account between 2011 and 2017.

The disagreement, detailed in the Federation Account Allocation Committee’s November 2025 review document obtained on Tuesday, has prompted FAAC to order a joint reconciliation session between both parties to resolve the long-standing impasse.

Periscope Consulting, commissioned by the Nigeria Governors’ Forum, accuses NNPCL of failing to fully remit crude oil proceeds and other statutory revenues during the seven-year period.

However, NNPCL formally rejected the audit findings, insisting that all revenues due to the Federation Account for those years have been fully accounted for and that no outstanding amounts remain.

Faced with these conflicting positions, the FAAC Sub-Committee directed NNPCL and Periscope to meet jointly to harmonize records and finalize the issue, noting that the reconciliation is still “work in progress.”

This clash revives a prolonged transparency dispute between state governments and the national oil company.

In February 2025, FAAC suspended its monthly meeting due to disagreements over NNPCL remittances, raising concerns over delays in revenue disbursement to states.

The controversy also extends to NNPCL’s management of the 30% Frontier Exploration Fund. The FAAC Sub-Committee observed that the company’s expenditure report from 2008–2024 lacked project-specific details and has requested a detailed breakdown linking costs to individual exploration activities in each basin. A response from NNPCL is still awaited.

Additionally, the committee is reconciling NNPCL’s outstanding liabilities of ₦2.03 trillion to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission for June–December 2023.

This sum has been referred to the Stakeholders Alignment Committee for resolution before reporting to the Federal Ministry of Finance.

In a related assessment, the World Bank recently accused NNPCL of remaining “a key source of revenue leakages,” noting that it remits only about 50% of revenue gains from the removal of the petrol subsidy to the Federation Account.

The bank urged stronger oversight and full disclosure of oil proceeds to improve fiscal transparency.

Despite NNPCL Group Chief Executive Officer Bayo Ojulari’s repeated commitments to operational transparency and accountability, legacy allegations of under-remittance continue to challenge the company’s reform agenda.

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