By Obinna Uballa
The Federation Accounts Allocation Committee (FAAC) has raised alarm over what it called 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 outstanding.
At the same time, the Office of the Accountant-General of the Federation (OAGF) has been tasked to explain over N2.03 trillion in outstanding payables covering taxes and royalties between June and December 2023.
The revelations were contained in the September 2025 report of the FAAC Post-Mortem Sub-Committee (PMSC), which highlighted persistent gaps in oil revenue remittances and worsening fiscal strain on states that depend on FAAC inflows to fund their budgets.
According to the document, the $42.37 billion dispute goes back to alleged under-remittances by NNPC between 2011 and 2017. Although a consultant, Periscope Consulting, was engaged to review the figures, reconciliation is still ongoing. NNPC, at the last sub-committee meeting, said it was “almost done” with its review and would revert within two weeks.
On the N2.03 trillion payables, FAAC’s breakdown showed huge accruals across several months: in June 2023 alone, NUPRC royalties stood at N133.65 billion while FIRS taxes reached N173.08 billion. By December, another N142.59 billion was added, bringing the seven-month total to more than N2 trillion. The Sub-Committee insisted that the OAGF, not NNPC, should account for these liabilities.
The report further revealed that between January and July 2025, cumulative arrears of about N1.6 trillion were reconciled and paid into the Federation Account. Yet, far larger sums remain unresolved, including $79.77 million and N6.74 trillion as of September 2025, in addition to N2.53 trillion in legacy arrears predating June 2023.
The Committee also scrutinised NNPC’s 30 per cent deductions for frontier exploration funding under the Petroleum Industry Act (PIA). While the company presented details of exploration programmes from 1999 to date, stakeholders demanded clearer financial accounts of both pre-PIA and post-PIA projects before September deadlines.
FAAC’s latest report underscores long-standing disputes over NNPC’s remittances, deductions and arrears—issues that continue to dominate meetings and fuel friction between the company, state governments and fiscal authorities.
