The Nigeria National Petroleum Corporation (NNPC) and the Nigerian governors are currently not on the same page, following the additional N40 billion remittance they made to the Federation Allocation Account Committee (FAAC).
The corporation said the Governors’ additional request of N40billion was unfortunate, given that NNPC is set to exit the cash call phenomenon.
The NNPC has justified its N147 billion June remittance to the Federation Accounts and Allocation Committee (FAAC), saying it is in line with the terms of agreement it had with governors on the matter.
NNPC Group General Manager, Group Public Affairs, Ndu Ughamadu, clarified in a statement issued on Thursday that the agreement it had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month. This is after meeting cash call obligations on JVs, deductions of Premium Motor Spirit (PMS) cost under recovery and pipeline maintenance.
The release stated that 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.
It would be noted that the Monthly FAAC meeting, scheduled to hold Wednesday,was reschedule as members failed to reach agreement on certain issues,especially on remittances by the NNPC.
Hassan Dodo,the director of information in the Ministry of Finance,said the meeting ended inconclusive and had been rescheduled for another date.
The director told newsmen as a result of the inconclusive nature on the remittance that, “We are sorry for the inconvenience this may cause you, but be rest assured you will re-invited for the briefing on a later date.”
“With this development, workers’ salary at both the federal and state levels for the month of June will likely not be paid as earlier planned until the matter responsible for the inconclusive meeting is resolved”.
