Buhari directs new method for NNPC remittances as FAAC disburses N821.9bn in June

In a bid to put an end to the lingering controversy surrounding the non-remittances of accurate revenue figures by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account, President Muhammadu Buhari has directed a new template for calculating oil revenue remittance by the corporation.

The Minister of Finance, Kemi Adeosun, made this disclosure while briefing newsmen at the end of the month’s Federation Account Allocation Committee (FAAC) meeting on Friday in Abuja.

Earlier this month, the minister had hinted that President Buhari, who doubles as the substantive Minister for Petroleum, would intervene in the crisis to forestall further delay in the payment of workers’ salaries.

Adeosun said the President’s intervention would permanently address the protracted dispute between the corporation and the state governors which had led to the disruption of the monthly FAAC meeting on four occasions this year, causing delay in the payment of workers’ emoluments.

The minister said that the draft of the new template would be out next month, adding that the details would also be sent to the states for their inputs.

The FAAC meeting, which mostly holds in the third week of every month, is where the accruals to the Federation Account from revenue generating agencies are shared among the three tiers of government.

Read also: Nigerian govt generated N748bn from Oil & Gas companies in 2017 – DPR

Meanwhile, the minister noted that the Federal Government, States and Local Government councils shared a total of N821 billion from the Federation Account as revenue generated in the month of June, about N153 higher than the amount shared in the previous month.

A breakdown of the amount showed that the federal government got N315 billion, the states received N194.5 billion, while the local government councils obtained N147.05 billion.

The oil producing states of the Niger Delta received additional N42.8 billion as 13 percent derivation.

Adeosun noted that henceforth, a pre-FAAC meeting would hold between the Federal Ministry of Finance and the NNPC to consider the figures available for remittance for the month before the each FAAC meeting.

On Tuesday, the Central Bank of Nigeria (CBN), Godwin Emefiele, had at the end of the Monetary Policy (MPC) meeting urged government to ensure it saves for rainy days to create buffer against oil shock, noting that the rise in the monthly allocation shared by FAAC was occasioned by the relative increase in the prices of crude oil in the international market.

 

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