Nigeria Senate Probes NNPC for Not Remitting of $5.4 Billion

  • Proceeds from the sale of oil leases and crude in question
  • Senate committee on finance to submit probe report in January
Photographer: Suzanne Plunkett/Bloomberg

Nigeria’s Senate is investigating allegations that the state-owned Nigerian National Petroleum Corp. failed to remit $5.4 billion of oil revenue to the government since 2013.

The amount includes $3.5 billion from the sale of three oil-mining leases and $1.8 billion from the sale of crude, Senate President Bukola Saraki said during Tuesday’s proceedings in the capital, Abuja. The Senate committee on finance, which has been directed to carry out the probe, will submit its report on Jan. 9, he said.

NNPC, as the oil company is known, didn’t immediately respond to two calls and messages seeking comment.

The state oil company has in the past faced allegations of withholding revenue that should have gone to the national account. In 2013, Lamido Sanusi, the central bank governor at the time, alleged the company had retained at least $12 billion of revenue that was due to the government. A subsequent audit by PricewaterhouseCoopers LLP said NNPC should refund $4.29 billion to the government and recommended tighter spending controls.

Nigeria needs investment of $35.4 billion in gas exploration, production, power and fertilizer plants, as well as a virtual pipeline system and flare gas, NNPC Managing Director Maikanti Baru said on Nov. 1.

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