Issue Description

Liability status on Good and Valuable Consideration (GVC) in respect of SPDC and NAOC divested assets to NPDC.

Neiti Recommendations

The payment terms as agreed by NNPC should be adhered to, while DPR and FIRS should carry out close monitoring and quarterly reconciliation with the entity concerned so as to ensure compliance with the agreed repayment plan.

Status Implementation

As at May 2019, NPDC had made payment of US$50m for GVC in respect of OMLs 60-63 for NAOC assets and US$ 396.511m in respect of OMLs 26, 30, 34, 40, 42, 4, 38 and 41 in respect of GVC for SPDC assets.

NPDC has dedicated 30,000bopd to the repayment of these liabilities since December 2018. There is also a loan of US$1.7b awaiting drawdown to pay-off its indebtedness. This is in addition to a quarterly payment of US$50m to FIRS in respect of the legacy tax indebtedness