NNPC To remit $34.2bn to Federation account

Human Rights Activist and Senior Advocate of Nigeria, Femi Falana, has written to the Minister of Finance, Olawale Edun, urging him to direct the Nigerian National Petroleum Corporation Limited (NNPCL) to remit the sum of $34.2bn to the Federation account.

Mr Falana, By a letter dated October 24, and titled, ‘Request To Recover $34.2bn Being Dividend Collected By NNPCL On Behalf Of The Federation’, recalled instances where monies were said to have been remitted by the NLNG to the NNPCL.

He noted that the sum totaling $34.2 billion was received on behalf of the Government of Nigeria from the Nigerian Liquefied Natural Gas (NLNG) Limited from 2004 to 2021.

The senior advocate said he would not hesitate to initiate legal proceedings at the Federal High Court for the immediate recovery of the said sum of $34.2 billion from the NNPCL if the finance minster fails to direct that the money be remitted to the Federation account.Falana said, “We shall also pray the Court to direct the NLNG to remit dividends earned by Nigeria to the Federation Account forthwith.”

“On April 27, 2019, the Senate Committee on Public Accounts held a public hearing on revenue generation drive for the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP). During the hearing, the NLNG General Manager, External Relations and Sustainable Development, Mrs. Eyono Fatai-Williams, disclosed that from 1999 to 2019 the company paid dividends of over $18 billion to Nigeria through the NNPCL from 2004 to 2020.She also revealed that the NLNG paid $9 billion tax to the federal government from 2011 to date while $15 billion had also been remitted for feed gas to the NNPC since the inception of the company.

“Based on the disclosure, the Senate Committee on Public Accounts asked the suspended Accountant-General of the Federation, Mr. Ahmed Idris who was in attendance, to confirm if the said sum of $33 billion was actually remitted to the Nigeria National Petroleum Corporation Limited that represents the interest of Nigeria in the NLNG. Mr. Idris said that the funds paid by the NLNG were not remitted to the Federation Account but warehoused by the NNPCL.

“Consequently, the Public Accounts Committee of the Senate directed the Accountant-General to determine how much was actually remitted to the Federation Account, and if there was any deduction by NNPC; how much was deducted and who authorized the deductions and the exchange rates applied for the amount that was remitted over the years under review.“Furthermore, on 29th March 2021, while speaking at the virtual Nigeria International Petroleum Summit (NIPS) 2021 Pre-Summit Conference and the official launch of the Decade of Gas in Abuja, former President Muhammadu Buhari disclosed that the Nigerian Liquefied Natural Gas Limited (NLNG) had generated $114 Billion in revenues over the years with $9 Billion in taxes remitted to the Federal Inland Revenue Service (FIRS). Apart from the tax remittance, the former President said that NLNG paid $18 Billion as dividends and $15 Billion in Feed Gas Purchases (FGP) to the Federal Government through the Nigerian National Petroleum Commission Limited (NNPC).

“It may interest you to note that in 2020 and 2021, the NNPCL equally received the sums of $545.13m and $722.44m respectively as dividends from the NLNG. The total sum for the two years is $1.267 billion. From the information at our disposal, the said sum of $1.267 billion was not remitted to the Federation Account by the NNPCL. Therefore, the NNPCL is withholding a total sum of $34.2 billion from the Federation Account.

“In light of the foregoing, you will agree with us that the NNPCL’s decision to divert the sum of $34.2 billion from the Federation is not backed by any law. We are compelled to request you to direct the NNPCL to remit the said sum of $34.2 billion to the Federation account as the said sum was received on behalf of the Government of Nigeria from the NLNG from 2004-2021.

“However, if you fail to accede to our humble request, we shall not hesitate to initiate legal proceedings at the Federal High Court for the immediate recovery of the said sum of $34.2 billion from the NNPCL. We shall also pray the Court to direct the NLNG to remit dividends earned by Nigeria to the Federation Account forthwith.

“While hoping that you will accede to our request, please accept the assurances of our highest esteem.” Falana stated.