Energy

Governors demand for extra N40bn responsible for FAAC deadlock – NNPC

Published

8 years ago

June 28, 2018

The Nigerian National Petroleum Corporation (NNPC) says the federation accounts and allocation committee (FAAC) meeting with governors ended in a deadlock because they wanted extra N40 billion.

The revenue sharing meeting had ended in a deadlock on Wednesday for the third time since January 2018.

In a statement released on Thursday by Ndu Ughamadu, NNPC’s spokesman said the corporation made an agreement with governors to make a monthly remittance of N112billion to FAAC subject to sales of domestic crude oil allocation for the corresponding month.

This, he said, would happen after NNPC meets its cash call obligations on joint ventures (JVs), as well as deductions of the cost of petrol under recovery and pipeline maintenance.

“NNPC was able to surpass the terms of the 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.

“The corporation regretted the governors’ additional request of N40billion, saying it was unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”

Maikanti Baru, group managing director, NNPC had in May said the corporation was faithfully remitting all revenues accruing to it to the federation account.

“While the process of audit and reconciliation of accounts is on, a lot of accusations of short payments and non-remittances are usually traded, we endeavour to keep our cool on these allegations because we know that we remit whatever is due to the federation account,” the GMD had said.