FAAC: NNPC govs disagree over additional N40bn remittances

The Nigerian National Petroleum Corporation (NNPC) has decried the demand by state governors insisting that the corporation must remit additional N40 billion to the Federation Accounts and Allocation Committee (FAAC), saying it had remitted N147 billion to the account for the month of June.

The corporation said the amount remitted was in line with the terms of agreement it had with governors on the matter.

In a statement by the corporation on Thursday, NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu, stated that the agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC.

The corporation said the amount is subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of Premium Motor Spirit (PMS)-cost under recovery and pipeline maintenance.

“NNPC was able to surpass the terms of agreement with the governors on the monthly remittance for the month of June by N35 billion, having taken a cue from their postures by taking from the sum meant for settling cash call obligations,” the statement read.

Read also: Govt workers’ June salaries may be delayed

The corporation said it regretted the Governors’ additional request of N40 billion, saying it was “unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”

Recall that the monthly FAAC meeting ended in stalemate on Wednesday.

Although, the Chairman, Forum of Finance Commissioners, Mahmoud Yunusa, declined to speak on the reason for the fruitless meeting, a source privy to the matter said the NNPC had not been honouring its statutory obligation to the Federation Account.

According to him, the corporation’s failure to generate and remit accurate revenue to the Federation Account had been a major cause for concern for the allocation committee, adding that the commissioners of finance have vowed to report the matter to their respective governors.

The development may cause delay in the payment of workers’ salaries for June at different tiers of government if the controversies surrounding the remittances remain unaddressed.
By Oluwasegun Olakoyenikan….

 

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