The Nigerian National Petroleum Corporation (NNPC) says it remitted N1.26 trillion into the federation account in 2018 as against the projected N1.22 trillion projected in the 2018 budget.
Maikanti Baru, NNPC group managing director, disclosed this during a presentation to the house of representatives ad hoc committee investigating non-remittances of funds to the federation account by the corporation between July 2017 and December 2018.
The presentation took place at the National Assembly Complex in Abuja.
Baru, who was represented by Godwin Okonkwo, managing director, NNPC Capital, said national daily production for the period averaged 1.89 million barrels per day (mbpd); lesser than the proposed 2.3 million barrels per day.
The NNPC GMD said JV cash call arrears are now being managed efficiently to ensure steady inflows to the federation account.
“The current management of NNPC ensures that it contributes to the cost of the production of crude oil and gas in the upstream sector to avoid a repeat of the mistakes of the past. If we had made cash call payments in the past, the arrears that we are liquidating now would not have arisen,” a statement signed by Ndu Ughamadu, NNPC spokesman, read.
“The current situation creates a win-win scenario for the country. The NNPC is strategically saving for the rainy day to make a better future for all of us by liquidating the arrears.”
The state oil firm also dismissed allegations of under remittance by state commissioners of finances, stating that the NNPC “was a going business concern that met financial obligations to its various stakeholders”.
The forum of commissioners of finance of FAAC and the NNPC have been in disagreement over revenue underpayment into the federation account.
In 2018, the FAAC meeting ended in a deadlock four times due to what the committee described as the inability of the NNPC to meet its revenue obligations to the three tiers of government.
Responding to a question on whether the NNPC 2018 audited account was ready, the GMD said that the 2018 audited account would be ready in June, with the backlog of unaudited account cleared.
He attributed the delay to some JV partners that were yet to turn in their budget performance for the 2018 budget cycle.