JUST IN...We’ll give FG, states, LGs enough money to share, NNPC denies reports of financial shortfall | Ripples Nigeria
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JUST IN…We’ll give FG, states, LGs enough money to share, NNPC denies reports of financial shortfall

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NNPC’s trading deficit soars by 200% to N30.8bn in one

The Nigerian National Petroleum Corporation on Friday said that it would continue to meet its financial obligations to the Federation.

Dr. Kennie Obateru, Group General Manager, Group Public Affairs Division, who states this in a statement, noted that reports of impending revenue shortfalls with dire consequences for the various tiers of government, were not accurate.

The government-owned company said the initial revenue project reported by the media pertains to revenue stream of the federal government and not an overall financial performance of NNPC.

NNPC had stated that subsidy on fuel was dwindling its Federation Account contribution, and that no money will be remitted into the account until subsidy is removed in June – meaning April and May will have no record of remittance.

This was stated in its “January to March and April to June projected remittance to federation account” document.

Also, in a letter to the Accountant General of the Federation entitled, “Re: Impact of Hike in Crude Oil Prices on the Deregulated Downstream Sector: Projected Remittance to the Federation Account for April to June 2021.”

NNPC projected a deduction of N112 billion from Oil and Gas proceeds for the month of April 2021 to ensure continuous supply of petroleum products to the country and guarantee energy security.

READ ALSO: Falana writes Nigerian govt to ensure NNPC accounts for N94trn unremitted funds

This led to report of an impending shortfall which is expected to affect the Federal, States and Local governments revenue for the months aforementioned.

However, in the follow up to clarify the report, it stated that the organisation knows its responsibility to the Federation, and it’s doing working to shore up revenues.

“NNPC maintains that it is conscious of its role and was doing everything possible to shore up revenues and support the Federation at all times.” NNPC said in a post on his official Twitter page.

Obateru added that, “The shortfall will be remedied by the Corporation as it relates only to the Federation revenue stream being managed by the #NNPC and does not reflect the overall financial performance of the Corporation. The NNPC remains in positive financial trajectory for the period in question,” it stated.

NNPC further stated that it would continue to meet its financial obligations to the Federation.

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