A renewed dispute between the Nigerian National Petroleum Company Limited and audit firm Periscope Consulting over an alleged $42.37bn oil revenue shortfall has forced the Federation Account Allocation Committee to mandate a joint reconciliation session. The FAAC sub-committee’s review documented the clash, noting NNPC’s formal rejection of the audit findings which accused it of under-remitting funds between 2011 and 2017.
The national oil company insists all revenues were fully accounted for and no amounts are outstanding. “NNPC Limited responded that all revenues due to the Federation have been properly accounted for and no outstanding amounts for the period under review,” the FAAC document stated. However, Periscope Consulting maintains its audit uncovered substantial gaps and disagrees with NNPC’s defense.
In response to the deadlock, the FAAC sub-committee directed that both parties meet jointly to harmonize records. “The Sub-Committee directed that there should be a joint meeting with the two parties to close out on the issue,” the report noted, adding that the assignment remains work in progress. The dispute revives a long-running transparency conflict between state governments and the oil company over revenue flows.
Separately, the committee queried NNPC over insufficient details on expenditures from the Frontier Exploration Fund from 2008-2024, requesting a project-specific breakdown. It also noted ongoing reconciliation of NNPC’s outstanding N2.03tn liabilities to tax and regulatory bodies for 2023. The World Bank has previously accused NNPC of being “a key source of revenue leakages,” undermining fiscal transparency.