By Odunewu Segun
The Nigerian National Petroleum Corporation is in the eye of the storm again as the 2013 audit report submitted by the Nigerian Extractive Industries Transparency Initiative (NEITI) showed that the NNPC either lost or refused to remit a total of N2.23 trillion to the Federation account.
According to the Chairman of Board of NEITI who is also the Minister of Solid Minerals, Kayode Fayemi, the recently published audit showed that the NNPC and its sub-units during the year under audit did not remit a total of N223 trillion, consisting of $9.75 billion and N378.67 billion to the federation account as earnings from various aspects of its operation.
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Explaining further on the audit report, Fayemi said the audit, which focused on all aspects of the extractive industries, showed that total revenue flows into the Federation Account from the oil and gas sector in 2013 was about $58.07 billion. The figure, he said represented about eight per cent decline when compared to the $62.9 billion realised in 2012.
Mr. Fayemi said the decline was attributed to the drop in oil and gas sales following divestment of federation equity in some oil mining leases, OMLs, crude oil losses as a result of destruction of production facilities, pipelines vandalism and crude oil theft.