NNPC Illegally Withheld over 30% Revenues since Buhari Regime
Since President Muhammadu Buhari assumed office in 2015, Nigeria’s state oil firm, NNPC, has withheld over 30 per cent of revenues realised from domestic crude oil sales, refusing to pay same into the Federation Account, Petroleum news investigation reviews.
The hefty deductions, a longstanding controversial practice, which pre-dated the Buhari administration has continued despite the Buhari administration’s declared commitment to transparency and accountability, and reform initiatives at the corporation.
Oil and gas industry experts well briefed on NNPC operations have condemned the provision in the NNPC enabling Act, which allows the corporation to first recover its operational cost from oil sales before remitting whatever is left to the Federation Account.
The Nigerian Extractive Industries Transparency Initiative (NEITI) in one of its Occasional Paper series on “Review of NNPC’s Monthly Financial and Operations Report” noted that such a practice, which does not set the limit for such cost recovery was “not transparent and fraught with corruption.”