The Federation Accounts Allocation Committee (FAAC) has raised concerns over massive unreconciled funds, calling on the Nigerian National Petroleum Company Limited (NNPC) and the Office of the Accountant-General of the Federation (OAGF) to account for billions of dollars and trillions of naira owed to the Federation Account.
According to FAAC’s September 2025 Post-Mortem Sub-Committee report, NNPC is yet to remit over US$42.37 billion in oil revenues covering 2011 to 2017. The committee engaged Periscope Consulting to audit the under-remittances, after which NNPC requested a two-month window to review the findings and respond. At the same time, the OAGF is expected to explain more than ₦2.03 trillion in outstanding liabilities tied to unpaid taxes and royalties due from the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) between June and December 2023.
While some progress has been made, with ₦1.6 trillion cleared and paid into the Federation Account between January and July 2025, much larger sums remain unsettled. As of September 2025, about US$79.77 million and ₦6.74 trillion are still pending reconciliation, alongside legacy arrears of ₦2.53 trillion predating June 2023. These unresolved balances continue to generate unease among federal and state stakeholders who rely on FAAC disbursements for budgetary planning.
The report also noted growing concerns over NNPC’s deductions for frontier exploration under the Petroleum Industry Act, which permits the company to retain 30 percent of certain revenues for exploration activities. Stakeholders have demanded clarity on how these funds have been utilized, both before and after the PIA came into force. In response, FAAC has tasked the OAGF with providing detailed justifications for the outstanding liabilities, while NNPC’s formal response is still awaited. Further reconciliation efforts are expected under the supervision of the Ministry of Finance to address lingering discrepancies and restore confidence in the revenue allocation process.
