Dalena Reporters l December 10, 2025
A renewed and bitter confrontation has erupted between the Nigeria Governors’ Forum (NGF) and NNPCL after audit findings by consultancy firm Periscope Consulting — hired by the governors — accused NNPCL of failing to remit as much as US $42.37 billion (roughly ₦12.91 trillion) in oil revenue to the Federation Account during the period 2011–2017.
The controversy resurfaced during the latest review by the Federation Accounts Allocation Committee (FAAC). According to the committee’s post-mortem report on November 2025, fresh submissions from both sides have reopened the long-standing dispute.
Periscope’s audit reportedly showed that NNPCL under-remitted billions in crude oil proceeds and statutory payments — revenues which should have been shared across federal, state, and local governments. The alleged gap covers multiple years, and if true, it would represent one of the largest alleged revenue-diversions in Nigeria’s oil history.
NNPCL, however, has vehemently rejected the findings. The company insists that all proceeds due to the Federation Account during the period in question were duly remitted — arguing that the audit’s claims stem from misinterpretation of complex commercial-oil accounting practices and that there is no outstanding balance due.
Because of the divergence, FAAC has ordered a joint reconciliation session: NNPCL and Periscope Consulting will meet to harmonize their records, reconcile figures, and attempt to “close out” the dispute. Until that is done, the shortfall remains contested.
Analysts say the dispute has major implications. States and local governments rely heavily on allocations from the Federation Account. If the alleged under-remittance is real, it could explain long-standing complaints from some governors about delayed or insufficient disbursements — even as oil prices rose. On the other hand, if the audit is flawed, the controversy could degrade market confidence in Nigeria’s oil sector and strain relations between producers, the oil company, and subnational governments.
Experts familiar with Nigeria’s oil history pointing to structural weaknesses under pre-reform arrangements call the alleged under-remittance a “legacy problem.” They argue that the crux lies in weak transparency, overlapping responsibilities, and lack of real-time oversight under the former arrangement.
As the reconciliation process proceeds, many await clarity because the outcome will affect revenue sharing, state budgets, and the credibility of both NNPCL and governance structures.