NNPC Dividend Shortfall Revealed by NEITI Audit

The Nigerian National Petroleum Corporation (NNPC) did not remit $16.8 billion in dividends it earned from its 49 percent stake in Nigeria Liquefied Natural Gas Limited (NLNG) over 16 years, according to the Nigerian Extractive Industries Transparency Initiative (NEITI).

NEITI's 2015 audit report states that NLNG paid $1.07 billion to NNPC in 2015, comprising $1.04 billion in dividends, $3.1 million in interest, and $29.1 million in loan repayments.

This total of $16.8 billion represents NLNG's payments to NNPC from 2000 to 2015, covering both the loan grant and the government's 49 percent stake in the company.

NEITI notes that while NNPC claims authorization from the presidency to hold these funds in trust, it has never provided evidence of remittance to the Federal Government or Federation Accounts.

The audit recommends NNPC submit documentation proving its authorization to hold the money in trust and provide a full account of how the $16.8 billion was spent over the period.