A fresh dispute has broken out between the Nigerian National Petroleum Company Limited (NNPCL) and Periscope Consulting, the audit firm hired by the Nigeria Governors’ Forum, over an alleged under-remittance of $42.37bn (about N12.91tn) to the Federation Account between 2011 and 2017.
The renewed tension arose after both parties submitted new reports, forcing the Federation Account Allocation Committee (FAAC) to order a joint reconciliation meeting to determine the true state of the accounts. This directive was contained in FAAC’s November 2025 post-mortem review.
The issue dates back to an audit commissioned by the Governors’ Forum, which accused NNPCL of failing to remit crude oil proceeds and other statutory revenues during the 2011–2017 period. But in its latest response, NNPCL insisted that all revenues due to the Federation were fully accounted for, rejecting the audit’s findings.
Periscope Consulting, however, strongly disagreed, insisting that its review uncovered major discrepancies and that the alleged $42.37bn shortfall remains unresolved.
According to the FAAC report:
“NNPCL responded that all revenues due to the Federation have been properly accounted for and no outstanding amounts for the period under review.”
But Periscope countered this position, prompting FAAC to direct both sides to meet, harmonise their records, and close out the matter. The reconciliation is still ongoing.
This conflict adds to a long history of disagreements between state governments and NNPC/NNPCL over transparency in oil revenue remittances. Earlier in 2025, FAAC even suspended a meeting due to disputes over N1.7tn in outstanding payments.
Experts say the controversy highlights longstanding structural issues. Professor Wumi Iledare noted that the alleged shortfall is a “legacy problem” from the pre–Petroleum Industry Act era, when the former NNPC had overlapping roles that made revenue reconciliation difficult. He emphasised that strict implementation of the PIA, real-time data monitoring, and independent audits are the only long-term solutions.
Meanwhile, the FAAC sub-committee also queried NNPCL over its use of the 30% Frontier Exploration Fund. Although the company submitted utilisation records from 2008 to 2024, the committee said the reports lacked project-specific details. NNPCL has been asked to provide a breakdown linking each exploration activity to actual expenditure.
Read Also;
Naira down to N1,475/$ in parallel market
In addition, FAAC confirmed outstanding liabilities of N2.03tn owed by NNPCL to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission from June to December 2023. These are currently being reconciled by the Stakeholders Alignment Committee.
The World Bank has also raised concerns, accusing NNPCL of incomplete remittance of oil revenues and warning that revenue leakages undermine fiscal transparency. It noted that of N1.1tn generated from crude sales and other income in 2024, only N600bn was remitted to the Federation Account.
Despite assurances of transparency from NNPCL’s Group CEO, Bayo Ojulari, past allegations of massive under-remittances continue to cast a shadow over the company’s reforms.
As FAAC pushes for a final reconciliation, the outcome of the joint review between NNPCL and Periscope Consulting is expected to determine the future of oil revenue management and fiscal trust in Nigeria.
