The Federation Account Allocation Committee (FAAC) has launched an investigation to find out what the Nigerian National Petroleum Corporation Limited (NNPCL) did with some dividends from the Nigerian Liquified Natural Gas (NLNG).
NLNG is a Nigerian natural gas company that operates in the liquefied natural gas sector.
An Ad-hoc committee is currently reviewing and comparing the amounts due for subsidies, taxes, royalties, and other payments, with the amounts that have been received or paid so far.
According to the report of the FAAC post mortem sub-committee for August, $275 million accrued as dividend from the NLNG.
NNPCL reported that out of the total, $220 million was used to pay off the nation’s debt on subsidy, which is 80 per cent of the total dividend.
However, NNPCL withheld $55 million or 20 per cent that should have been paid to the nation’s coffers, a development the committee said was unconstitutional.
The Ad-hoc Committee had its inaugural meeting on 26th July, to consider the terms of reference. Thereafter, the Sub-Committee wrote to NNPCL requesting for the details of dividend accrued from NLNG operations from inception to date. The Sub-Committee is awaiting response from NNPCL.
The Federation Share which is 40 per cent of PSC Profits amounting to $7.10 million and N26.21 billion were transferred to Federation Account and shared in August.