The 2012 NEITI audit confirmed that NNPC collected USD 2.795 billion in dividends, loan and interest repayments on behalf of the state, but that these have not been remitted into the Federation account as required by law. In the same year, the Auditor General listed NNPC as one of the corporations that is not complying with provision of the Fiscal Responsibility Act.
Given this finding, the 2012 NEITI audit recommended that NNPC should comply with the legal provisions, although NNPC claims that it has Presidential approval to sequester the dividends to fund gas related projects.
In response, the Inter-Ministerial Task Team (IMTT), which has the mandate to consider and implement NEITI recommendations, has alerted the government to the need to ensure that NNPC pays the funds into the Federation account. The government is looking into the evidence of dividend payments received by NNPC, and amounts transferred to the Federation account.
Sale of government crude:
NEITI audits have confirmed that although NNPC ought to pay for domestic crude allocation within 90 days, it does not do so. This has led to a build-up of unpaid dues by NNPC amounting to appx. USD 3.5 billion as of December 2012. According to NNPC, the amount represented the value of NNPC operating costs, and that was therefore used to cover these.
In light of these findings, the NEITI audit recommended that NNPC should promptly pay debts to improve cash flows to the federation.
Responding to this recommendation, NEITI reports that a monitoring framework has been developed jointly by Office of the Accountant General and NNPC to ensure that payments are made by NNPC when due.