FAAC exposes $42.4bn NNPC under-remittance, queries OAGF over N2trn unpaid taxes

The Federation Accounts Allocation Committee (FAAC) has flagged massive shortfalls in oil revenue remittances, accusing the Nigerian National Petroleum Company Limited (NNPC) of failing to pay $42.37 billion allegedly due to the Federation Account.

In its September 2025 report, FAAC’s Post-Mortem Sub-Committee (PMSC) also ordered the Office of the Accountant-General of the Federation (OAGF) to explain more than N2.03 trillion in unpaid taxes and royalties accrued between June and December 2023.

According to the report, the disputed $42.37 billion dates back to NNPC under-remittances between 2011 and 2017. A reconciliation by Periscope Consulting is still ongoing, though NNPC recently told the sub-committee it was “almost done” with its review and would provide updates within two weeks.

On the domestic side, FAAC’s breakdown showed huge unpaid obligations piled up in just seven months of 2023. In June alone, NUPRC royalties were put at N133.65 billion and FIRS taxes at N173.08 billion. By December, a further N142.59 billion was added, bringing the total to over N2 trillion. The sub-committee stressed that responsibility for explaining the liabilities rests with the OAGF.

Despite N1.6 trillion being reconciled and paid into the Federation Account between January and July 2025, far larger sums remain outstanding—including $79.77 million and N6.74 trillion as of September 2025, plus N2.53 trillion in legacy arrears predating June 2023.

The committee also raised questions over NNPC’s 30 per cent deductions for frontier exploration funding under the Petroleum Industry Act. While the company provided project details from 1999 to date, FAAC insisted on clearer accounts of both pre-PIA and post-PIA programmes.

FAAC’s latest disclosures highlight unresolved disputes over NNPC’s remittances and fiscal transparency, issues that continue to strain relations between the company, state governments, and federal revenue authorities.