Nigeria’s long-running effort to reconcile oil revenues due to the Federation Account has encountered a major setback after the Nigerian National Petroleum Company Limited (NNPC Ltd) and Periscope Consultants, engaged by the federal government and state governors, failed to agree on a $42.3 billion liability believed to be owed to the federation.
The disagreement was disclosed in the FAAC Post-Mortem Sub-Committee Report for February 2026, seen by THISDAY, which reviewed outstanding reconciliation issues involving revenues generated by key government agencies.
The $42.3 billion figure is separate from the N210 trillion discrepancy currently under investigation by the National Assembly.
In the report, the sub-committee explained that the reconciliation exercise was designed to determine the precise amount of oil revenue due to the Federation Account by comparing NNPC’s internal records with figures generated by independent consultants.
However, both parties were unable to align their calculations regarding the disputed $42.3 billion, stalling the reconciliation process.
The document stated:“Recall that the NNPCL and Periscope Consultants were mandated to meet and harmonise their figures before presentation to the Sub-Committee.
During the Sub-Committee’s last meeting, NNPCL reported that they are yet to agree with Periscope Consulting regarding the under-remittances of $42.373 billion to the Federation.
The NNPCL representative stated that they still maintain their earlier position that the company has nothing to refund to the Federation Account.
The Sub-Committee gave them a deadline to meet and reconcile their differences and report back before the next FAAC Plenary meeting.
The unresolved differences mean authorities have not been able to conclusively establish the exact volume of funds that should have been remitted by NNPC to the Federation Account, the source from which revenues are shared among the federal, state, and local governments.
The report also highlighted other issues, including the controversial use of the Frontier Exploration Fund (FEF) to finance hydrocarbon exploration in Nigeria’s frontier basins.
According to the FAAC committee, NNPC received over N453.455 billion in 2025 from the FEF, representing 30 percent of the total Production Sharing Contract profit.
Recent Executive Order 09 directs the fund to flow directly to the Federation Account, following concerns raised by Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, about improper deployment of the resources.
The committee further examined deductions associated with government-backed infrastructure financing initiatives, as well as various special accounts in the federation’s revenue management system.
A retreat convened by the FAAC Post-Mortem Sub-Committee focused on broader reforms to enhance transparency, accountability, and efficiency in the management of Nigeria’s fiscal resources.
Amid these developments, indications emerged that the Senate may summon President Bola Tinubu, in his capacity as Minister of Petroleum Resources, to answer questions on the staggering N210 trillion discrepancy identified in NNPC’s audited financial statements (2017–2023).
Senate Public Accounts Committee Chairman Aliyu Wadada, speaking on Sunday, March 8, 2026, on Channels Television’s “Sunday Politics,” said the upper chamber would question any official necessary to unravel the discrepancy.
According to Wadada, the total figure comprises N103 trillion recorded as accrued liabilities and N107 trillion as receivables, both lacking sufficient documentation or substantiation.
The committee also raised concerns over alleged double charges during NNPC’s rebranding exercise, subsidy accounting duplication between NNPC and National Petroleum Investment Management Services (NAPIMS), and questionable entries under cash-call arrangements, which had been abolished under the Buhari administration in 2016.
Wadada stressed that the probe was not politically motivated, emphasizing that the investigation seeks to ensure transparency in managing Nigeria’s oil revenues:
“This is not a political witch-hunt. What is wrong is wrong, regardless of who is involved.”
The committee has already moved to summon former top officials, including Mele Kyari, former Group Managing Director; Umar Ajiya, former Chief Financial Officer; and Bala Wunti, another senior executive, for explanations at a public hearing expected after the Eid break.
The FAAC Post-Mortem Sub-Committee recommended further engagement between NNPC and Periscope Consultants to resolve the outstanding differences, stressing that finalising the reconciliation exercise is critical to restoring confidence in Nigeria’s oil revenue accounting framework.
