Tension Rises Between Governors and NNPC Over $42bn Oil Revenue Shortfall
A fresh dispute has erupted between the Nigerian National Petroleum Company Limited (NNPC) and the Nigeria Governors’ Forum over an alleged $42.37 billion shortfall in oil revenue remitted to the Federation Account between 2011 and 2017. Periscope Consulting, hired by the Governors’ Forum to audit the accounts, claims significant gaps in remittances, while NNPC insists all revenues were properly accounted for. The Federation Account Allocation Committee (FAAC) has now mandated a joint reconciliation session to resolve the impasse. The controversy has stirred concerns over delays in state allocations, vital for local budgets already strained by inflation. Analysts note that the dispute reflects long-standing weaknesses in the pre-Petroleum Industry Act framework, highlighting the need for real-time monitoring, transparency, and continuous independent audits. The disagreement also covers NNPC’s utilization of the 30 per cent Frontier Exploration Fund, with FAAC seeking project-specific spending details. Both sides remain entrenched, underscoring the persistent mistrust between state governments and the national oil company over accountability and financial governance.
| 2025-12-10 08:20:50