The Federal Accounts Allocation Committee has revealed that the Nigerian National Petroleum Company Limited currently owes the Federation Government a staggering N6.57tn as of May 2025.

FAAC said the bulk of the debt, about N3.89tn, comprised unpaid royalties due to the Nigerian Upstream Petroleum Regulatory Commission.

According to the committee, the NNPCL is yet to remit another N2.52tn outstanding tax liabilities payable to the Federal Inland Revenue Service.

FAAC stated this in a report titled, ?NNPC Ltd Payables to NUPRC, FIRS & Federation as at May 2025 FAAC? which was submitted at the May FAAC meeting.

The report, obtained on Friday by our correspondent, raises alarm over the state-owned firm?s financial obligations and the country?s plunging oil earnings.

It detailed outstanding remittances spanning royalties, taxes, and dividends that NNPC has yet to pay into the federation account between June 2023 to April 2025.

A breakdown of the report shows that the debt is split across three major components; N3.89tn due in royalties to the NUPRC, N2.53tn in unpaid taxes to the FIRS, and N162.33bn in unremitted dividends.

Earlier this year, a World Bank report said the NNPCL was remitting only half of the financial gains from the removal of petrol subsidies due to debt arrears.

It said out of the N1.1tn revenue from crude sales and other income in 2024, the NNPCL only remitted N600bn, leaving a deficit of N500bn unaccounted for.

?Despite the subsidy being fully removed in October 2024, NNPCL started transferring the revenue gains to the Federation only in January 2025. Since then, it has been remitting only 50 per cent of these gains, using the rest to offset past arrears.

?Gross revenues collected by Nigeria?s main revenue agencies surged in 2024, despite minimal remittances from NNPCL. FAAC data show that gross revenues collected by the main revenue agencies (FIRS, NCS, NNPCL, and NUPRC) rose significantly from N16.5tn (7 per cent of GDP) in 2023 to N29.5tn (10.6 per cent of GDP) in 2024.

?However, NNPCL was the only laggard, remitting just N0.6tn to FAAC in 2024, down from N1.1tn in 2023, largely due to the implicit PMS subsidy, which remained in place until the end of September 2024. Although the subsidy was fully removed on October 1, 2024, NNPCL did not start transferring the resulting revenue gains to the Federation until January 2025. From that point, it began remitting 50 per cent, with the other half being used to settle past arrears,? the World Bank stated.

The alarming figures underscore the lingering opacity and revenue leakages in Nigeria?s oil and gas sector, despite ongoing reform efforts by President Bola Tinubu?s administration.

An analysis of the FAAC report reveals significant month-to-month volatility in the debts, suggesting irregular remittance practices.

While oil royalty obligations climbed as high as N321.99bn in September 2023, the figure dropped to N127.32bn by May 2024 and fluctuated throughout the rest of the year.

It recorded outstanding remittances across various months, notably from July 2023 to April 2025, with the largest monthly gap recorded in August 2023 at over N770bn.

Tax obligations to FIRS followed an equally unstable trend, peaking at N173.9bn in October 2023 and dipping sharply to just N34.2bn in January 2024. The highest monthly tax backlog in 2024 was N122.2bn recorded in April.

From July to December 2023 alone, royalty debts to NUPRC surged from N133.96bn to N178.47bn, while tax arrears to FIRS fell drastically from N173bn in July to N81.8bn in December. In the first quarter of 2024, royalty arrears rose again, reaching N229.49bn in March before slowing by midyear.

By the first four months of 2025, monthly royalty debts hovered above N130bn, with no signs of major reduction, while taxes remained above N64bn monthly, an indication that remittances are still largely pending.

A total of N2.03tn was owed by NNPC in 2023. This included N1.19tn in royalties and N843.28bn in taxes. However, the report explained that this amount would be handled and accounted for by the Office of the Accountant General of the Federation.

From January 2024 to April 2025, an additional N4.537tn was recorded as outstanding payments.

Meanwhile, a brought forward balance of N107.67bn was also noted in the report.

The year 2024 began with N208.57bn in outstanding oil-related payments in January. This figure increased sharply in February to N353.50bn, indicating a significant jump in unremitted funds.

By March 2024, the debt reached its highest level for the year at N532.07bn, suggesting either a rise in crude oil output without corresponding remittance or delays in payment reconciliation.

In April 2024, the amount dropped to N277.41bn nearly half of what was owed in March. However, the figures remained well above N100bn each month, reflecting ongoing non-settlement of obligations.

From May to September 2024, the amounts hovered between N187bn and N207bn monthly. This period showed relative stability but still pointed to a consistent backlog of unpaid dues.

In October 2024, the outstanding amount spiked again to N319.56bn and by November, it jumped further to N456.09bn, the second-highest for the entire period. This sharp rise may reflect end-of-year crude export activities or unresolved backlogs.

December 2024 closed with N449.36bn, capping the year with a high volume of outstanding remittances.

In January 2025, there was a significant drop to N197.05bn, but this was short-lived. The figure increased again in February to N234.83bn and remained high in March at N213.56bn.

By April 2025, the debt stood at N204.74bn indicating that NNPC had yet to significantly reduce the outstanding payments despite sustained oil production.

The document further explained that, ?The outstandings for the period up to May 2023 for loyalty. Tax and 40 per cent PSC Profit due to the Federation were included in the Presidential Approved Stakeholder Alignment Committee.

?The sum of N2.03tn comprising royalty of N1.19tn and Tax of N843.28bn from June to Dec 2023 is to be accounted for by the Office of the Accountant General.

?Following the engagement between the Leadership of NNPCL and the Minister of Finance and Coordinating Minister of the Economy/Chairman of FAAC, NNPC Limited remitted the 50 per cent JV Royalty & Taxes in February, March & April and May 2025 FAAC.

?The USD was converted based on the CBN advised exchange rate of the lifting month.?

Meanwhile, the NNPCL has alleged a growing and coordinated sabotage campaign aimed at discrediting its leadership and obstructing its ongoing transformation into a corruption-free, performance-driven energy company.

In a strongly worded public notice issued early Friday morning, the national oil company said the campaign involved both ?known and faceless actors? operating within and outside the organisation, who have resorted to ?planting scandalous and fabricated reports? aimed at distracting its top executives and misleading Nigerians.

It noted that the smear campaign by entrenched interests is a backlash against the company?s anti-corruption reforms, with falsehoods and propaganda being deployed to undermine its transformation efforts.

The statement signed by the firm?s management stated, ?The Nigerian National Petroleum Company Limited has uncovered an emerging coordinated sabotage campaign being waged by a syndicate of known and faceless actors, both outside and within various levels of the organisation.

?This group is actively spreading lies and misinformation to discredit NNPC Ltd.?s leadership and derail the organisation?s ongoing transformation into a corruption-free, performance-driven energy company, in line with the mandate of His Excellency, the President of the Federal Republic of Nigeria.?

It stressed that their tactics include planting scandalous and fabricated reports, curated to distract leadership, mislead the public, and undermine the commitment of our dedicated workforce and reform-minded Nigerians.

While the NNPC did not name specific individuals allegedly involved in the sabotage, the company insisted that it would not be deterred by what it described as a smear campaign orchestrated by forces resistant to transparency, accountability, and change.

Sunday PUNCH reports that the public outcry by the state-owned firm comes amidst an ongoing probe by the Senate Committee on Public Accounts, alleging financial discrepancies amounting to over N210tn in its audited reports from 2017 to 2023.

In response to NNPCL?s absence, the committee issued a 10-day ultimatum, demanding the company?s top executives appear before the panel by July 10 or face constitutional sanctions.

NNPCL Officials had failed to appear before the Senate Committee to defend what they described as ?mind-boggling? irregularities in NNPCL?s financial statements.

The senate flagged N103tn in accrued expenses, including N600bn in retention fees, legal, and auditing costs, without supporting documentation.

Also questioned was another N103tn listed under receivables.

?These are calculated efforts by those who feel threatened by reform, transparency, accountability, and change, clear evidence of the lengths to whichh they will go to obstruct the transformation of Nigeria?s foremost energy institution.

?We expect a surge of defamatory content in the days and weeks ahead. NNPC Ltd. Remains undeterred. The transformation is underway, and no amount of sabotage will stop it,? It added.

The oil giant?s management reiterated its commitment to continue aligning its operations with the vision of President Bola Tinubu?s administration, which has consistently called for sanitising the oil and gas industry plagued by decades of opacity and inefficiency.

?We urge our dedicated staff, stakeholders, and all patriotic Nigerians to stay focused, ignore the noise and not be discouraged. We remain on mission,? the notice concluded. (Sunday PUNCH)

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