Fresh tension has emerged between the Nigerian National Petroleum Company Limited (NNPCL) and Periscope Consulting, the audit firm commissioned by the Nigeria Governors’ Forum (NGF), over an alleged $42.37bn (N12.91tn) oil revenue shortfall said to have occurred between 2011 and 2017.
The dispute, which resurfaced following new submissions from both sides, has prompted the Federation Account Allocation Committee (FAAC) to order a joint reconciliation session to determine the accurate remittance records and resolve the long-standing controversy.
Details of the renewed confrontation were contained in FAAC’s November 2025 post-mortem review.
According to the FAAC Sub-Committee, NNPCL has formally dismissed Periscope Consulting’s audit findings, insisting that it owes no outstanding revenue for the period under review. The company maintained that all crude oil proceeds and associated earnings were duly remitted.
Periscope Consulting, however, refuted NNPCL’s position, arguing that its audit uncovered substantial gaps in remittances. The firm maintained that the alleged $42.37bn under-remittance remains outstanding.
Due to the conflicting stances, FAAC directed both NNPCL and Periscope to meet and harmonise their data. “This assignment is work in progress,” the committee noted.
This development is the latest in a series of disputes between state governments and NNPCL over oil revenue transparency. Earlier in February 2025, FAAC suspended its monthly meeting as tensions escalated over an alleged N1.7tn outstanding payment from NNPCL.
State governors have repeatedly accused the national oil company of opaque remittance processes involving crude oil sales, domestic allocations, subsidy deductions, and joint venture cash calls.
Professor Emeritus of Petroleum Economics, Wumi Iledare, said the alleged shortfall reflects deep-rooted flaws in Nigeria’s pre–Petroleum Industry Act (PIA) system.
“The former NNPC had overlapping roles that made revenue reconciliation difficult and prone to disputes,” he said, calling for strict implementation of the PIA, real-time revenue monitoring, and continuous independent audits.
FAAC also queried NNPCL over gaps in its utilisation report for the 30 per cent Frontier Exploration Fund. Although the company submitted records for 2008–2024, the sub-committee noted that the documents lacked basin-specific expenditure details. NNPCL has been asked to provide a project-by-project breakdown.
The committee also reviewed NNPCL’s outstanding liabilities of N2.03tn owed to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission for June–December 2023.
These obligations, covering royalties and taxes, are now part of a broader reconciliation being handled by the Stakeholders Alignment Committee.
The World Bank recently accused NNPCL of failing to fully remit oil revenues, warning that the practice undermines fiscal transparency and macroeconomic stability.
The institution said that in 2024, NNPCL remitted only N600bn out of N1.1tn in earnings, retaining the remainder to offset past arrears.
Despite these criticisms, NNPCL Group Chief Executive Officer, Bayo Ojulari, has continued to assure Nigerians and global partners of transparent operations and strict compliance with fiscal rules.
However, legacy issues from past years including allegations of multibillion-dollar under-remittances continue to overshadow the company’s reform efforts.
