The Federation Accounts Allocation Committee (FAAC) has raised fresh concerns over huge unreconciled revenues, disclosing that more than $42.37 billion allegedly due from the Nigerian National Petroleum Company Limited (NNPC) to the Federation Account remains unresolved.

At the same time, the Office of the Accountant-General of the Federation (OAGF) has been tasked to account for over N2.03 trillion in outstanding payables relating to taxes and royalties.

Details of the disclosures were contained in the September 2025 report of the FAAC Post-Mortem Sub-Committee (PMSC), which highlighted persistent gaps in Nigeria’s oil revenue remittances.

The Committee noted that while NNPC insists its deductions are legitimate and in line with the Petroleum Industry Act (PIA) and other laws, state governments and fiscal authorities continue to contest the figures.

The $42.37 billion in question stems from alleged under-remittances by NNPC, a matter that has been dragging on for years. Specifically, the alleged under-remittances cover 2011 to 2017, according to the document.

To resolve it, the Sub-Committee had engaged a consultant, Periscope Consulting, but reconciliation has yet to be concluded. At its last sitting, NNPC representatives reported that they were “almost done” with the review process and would provide a formal update within two weeks.

“This assignment is still a work in progress,” the report stated, reflecting the frustration of commissioners of finance who rely on FAAC inflows to fund state budgets.

“Recall that a meeting was conveyed by the Sub-Committee with Periscope Consulting, the Consultant engaged by the Forum of State Commissioners of Finance regarding under-remittance of $42,373,896,555.00 by the NNPC to the Federation Account.

“Also recall that the Committee reported that NNPC requested for a minimum of 2 months grace to study the consultant’s submission considering the period covered by the report (2011-2017) and to revert back.

“As at the Sub-Committee’s last meeting, NNPC reported that they are almost done with their response and will report back within two weeks. The Sub-Committee awaits NNPC response to be able to close out on the matter. This assignment is still work in progress,” part of the document stated.

In addition to the $42.3 billion dispute, NNPC has recognized obligations of N2.032 billion covering unpaid Federal Inland Revenue Service (FIRS) taxes and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) royalties for the period June to December 2023.

Breakdowns showed heavy accruals across several months. In June 2023 alone, NUPRC royalties stood at N133.65 billion while FIRS taxes hit N173.08 billion, bringing that month’s total to over N306 billion. By December 2023, another N142.59 billion was recorded, bringing the seven-month total to N2.03 trillion.

The Sub-Committee directed the OAGF to account for these liabilities during alignment meetings with stakeholders.

“The Sub-Committee is still awaiting a feedback from the Accountant-General of the Federation on the outstanding sum of payables being NUPRC Royalty and FIRS Tax for the period June to December, 2023. Recall that NNPC insisted that the OAGF should account for the N2,032,479,380,677.87 and NNPC recognized it as payables during the alignment Committee meeting,” the FAAC document showed.

The report also revealed that between January and July 2025, cumulative arrears of about N1.6 trillion were reconciled and paid into the Federation Account. These included supplementary arrears and NUPRC royalties converted into naira at prevailing Central Bank rates.

However, the Sub-Committee noted that much larger sums remain pending. As of September 2025, outstanding revenues undergoing reconciliation stood at $79.77 million and N6.74 trillion.

Adding to the fiscal strain are legacy arrears of N2.53 trillion from periods before June 2023. These were referred to the Stakeholders Alignment Committee for further review, as NNPC had submitted updated figures to replace earlier estimates. The Committee warned that final amounts could vary depending on the outcome of technical reconciliation led by the Ministry of Finance.

The FAAC report also scrutinized NNPC’s deductions for frontier exploration funding. By law, the company retains 30 per cent of certain revenues to finance exploration in frontier basins.

At the meeting, NNPC presented details of exploration carried out from 1999 to date and outlined its 2025 programme. But stakeholders demanded more clarity, directing the company to submit detailed financial accounts of both pre-Petroleum Industry Act (PIA) and post-PIA projects by this September.

Disputes over NNPC’s remittances are not new. Over the years, successive FAAC meetings have been dominated by arguments over the company’s deductions, especially during the subsidy era.

Beyond arrears and remittance gaps, the Committee raised questions about NNPC’s deductions for frontier exploration. Under the Petroleum Industry Act, the company is empowered to deduct 30 per cent of certain revenues to finance exploration in frontier basins.

During the meeting, NNPC presented details of exploration activities carried out from 1999 to date and outlined its 2025 plans. However, stakeholders demanded greater clarity on the utilization of the fund. (THISDAY)