FAAC: Reps begin probe of underpayment by NNPC

Malabu deal may have cost Nigeria $10bn —Reps
By Editor

In a bid to end the controversies surrounding the non-remittances of the Nigerian National Petroleum Corporation (NNPC), the House of Representatives has ordered an investigation into the alleged underpayment of over N100bn to the Federation Account.

Two weeks ago, the monthly meeting of the Federation Accounts Allocation Committee (FAAC) ended in stalemate for the fourth time this year over alleged failure of the NNPC to remit accurate revenue to the Federation Account.
The motion, which was moved by the Chairman, House Committee on Ethics/Privileges, Nicholas Ossai, and later passed by the House, specifically asked the NNPC to produce its records on crude oil sales from January to July to the ad hoc committee that would be set up for the probe.

The NNPC records are expected to include the volume of crude production within the period; the total sales; how much was utilised as Joint Venture Cash Calls; and the exchange rate used in converting dollar to naira before the money was lodged in the Federation Account.

Osai expressed disappointment over the failure of the corporation to remit accurate revenue despite the fact the crude oil was sold above $75 per barrel, about $24 higher than the crude oil price benchmark in the approved 2018 budget.

Read also: Oil production falls by 0.41mbpd in June, threatens 2018 budget

He stressed that the development would further aggravate conditions of states struggling to pay workers’ salaries.

The Speaker of the House, Yakubu Dogara, is expected to name the members of the ad hoc committee within the legislative days.

Meanwhile, the FAAC meeting, which reconvened yesterday, was inconclusive as Commisioners of Finance were seen leaving the meeting one after the other grumbling.
Members of FAAC and some of its officials declined to speak with journalists on the matter after the meeting, while some of the officials said the meeting was postponed to Thursday because FAAC could not form a quorum, others said the decision was because of the lingering issue of revenue underpayment.

By Oluwasegun Olakoyenikan


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