The Federal Government has extended the ongoing probe and reconciliation of payments made by revenue-generating agencies—including the Nigerian National Petroleum Company Limited (NNPCL)—to December 2024, following unresolved discrepancies in remittances to the Federation Account.
This latest move, approved by the Federation Account Allocation Committee (FAAC), underscores government’s deepening resolve to enforce fiscal transparency and accountability across agencies that contribute to national revenue.
Documents obtained from the October 2025 FAAC meeting and reviewed by The PUNCH revealed that the decision to extend the reconciliation deadline was taken after the sub-committee in charge of monthly reviews reported that several outstanding payments were yet to be fully reconciled.
The report indicated that the probe involves a number of agencies, with the NNPCL at the center of an alleged under-remittance of $42.37 billion (approximately ₦12.91 trillion) to the Federation Account between 2011 and 2017.
“Members should note that the above outstanding amounts are still being reconciled at the monthly reconciliation meetings between the agencies and the sub-committee. Furthermore, the outstanding payments from the Revenue Generating Agencies before June 2023 were referred to the Stakeholders Alignment Committee,” the document stated.
According to FAAC insiders, the Stakeholders Alignment Committee has now been tasked with a deeper audit of the pre-2023 outstanding payments, as discrepancies continue to surface during ongoing monthly reconciliations.
NNPCL’s Response and Ongoing Scrutiny
The NNPCL, in its response to the FAAC Secretariat, reportedly submitted documentation and explanations for the alleged under-remittance. Sources close to the reconciliation process, however, disclosed that “gaps remain” in the financial records and remittance justifications presented by the company.
The extended probe is expected to cover not just the oil company’s operations during the 2011–2017 period, but also a review of how revenue inflows were managed under different fiscal regimes and subsidy policies.
Public finance experts have welcomed the government’s decision to extend the reconciliation, describing it as a necessary step toward restoring public confidence in Nigeria’s revenue governance structure.
According to Abuja-based financial analyst, Dr. Femi Adedoyin, “The recurring discrepancies in remittance data highlight systemic weaknesses that must be addressed through transparency reforms. Extending the deadline shows government is serious about closing leakages that have cost Nigeria billions over the years.”
NUPRC Emerges as Strong Performer
In contrast to the lingering discrepancies surrounding NNPCL’s accounts, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has emerged as one of the government’s top-performing revenue agencies in 2025.
According to figures presented in NUPRC’s latest Revenue Performance Report at the FAAC meeting in Abuja on October 16, 2025, the commission remitted a total of ₦6.215 trillion to the Federation Account between January and September 2025.
The data, reviewed by THISDAY, showed that NUPRC transferred ₦741.99 billion to the Central Bank of Nigeria (CBN) in September alone, representing 61.59 percent of its approved monthly revenue budget of ₦1.204 trillion.
Despite this strong performance, the commission still recorded a shortfall of ₦462.81 billion (38.41 percent) due to global crude oil price fluctuations and shortfalls in domestic production levels. When compared with August 2025’s performance of ₦745.20 billion, the September figure represented only a marginal decline of 0.43 percent, demonstrating resilience in the face of market volatility.
Analysts Call for Stronger Revenue Oversight
Experts say the contrast between NNPCL’s remittance challenges and NUPRC’s consistent performance highlights the urgent need for stronger fiscal monitoring mechanisms within Nigeria’s revenue framework.
Oil and gas analyst Dr. Chioma Ibeh noted that “while NUPRC has maintained a steady inflow into the Federation Account, the NNPC probe signals an era of renewed accountability in Nigeria’s oil economy. The federal government must now ensure that every agency aligns with global best practices in revenue transparency.”
Stakeholders have also urged the government to fast-track the review process and release an interim report before the end of the first quarter of 2025 to assure Nigerians that the extended probe is not a political exercise but a genuine reform initiative.
As the reconciliation process continues, FAAC’s decisions and the subsequent actions of the Stakeholders Alignment Committee are expected to shape the tone of Nigeria’s fiscal governance reform in the coming year.
The Federal Government has extended NNPC’s revenue probe to December 2024 over unresolved remittance discrepancies, as NUPRC remits ₦6.2 trillion to the Federation Account despite crude oil market volatility.
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