OAuGF calls for recovery of $2.021bn, N13.314bn revenue from NPDC

The Office of the Auditor General for the Federation (OAuGF) has called on the National Assembly to recover the sum of US$2.021 billion and N13.314 billion revenues accrued from sales of crude oil and gas as well as royalties from Nigerian Petroleum Development Company (NPDC). The details of the audit query were contained in the audit query titled: ‘Unsubstantiated set-off of NPDC claims against Federation (US2,021,411,877.47 and N13,313,565,786.49). The OAuGF also observed that: “from the review of highlights of 2020 annual crude oil royalty and Gas, Gas flare payment and concession rentals reconciliation minutes of a meeting between DPR (now NUPRC) and NPDC that: the sum of US$2,021,411,877.47 from outstanding Royalty from Crude Oil and Gas sales and Gas flare, were reported as a set-off of Nigerian Petroleum Development Company’s (NPDC) claims against the Federation per inter-agency reconciliation for 2020.  In the management’s response to the three audit queries, “The Department (now Commission) does not have control over the set offs made by Nigerian Petroleum Development Company’s (NPDC) as claims against the Federation per inter-agency reconciliation meetings.” Hence, the OAuGF recommended that: “The Director/CEO (now Commission Chief Executive – CCE) should be requested to: Account for the set-off of US$2,021,411,877.47 and US$613,313,565,786.49 claims against the Federation by NPDC. Recover the sum of US$2,021,411,877.47 and N13,313,565,786.49 from NPDC and pay back to the Federation Account. Forward evidence of recovery and remittance to the Public Accounts Committees of the National Assembly. Otherwise, sanctions relating to failure to collect and account for Government Revenue prescribed in paragraph 3112 (11) of the Financial Regulations should apply.”