FAAC Meeting Over NNPC Under Remittance Ends in Deadlock

Stephen U.C, Petroleum news, Abuja

Again, Nigeria’s national oil company, the Nigerian National Petroleum Corporation (NNPC), is in the news for the wrong reasons.

The Office of the Auditor General of the Federation in its latest Government Accounts Report accused the company of not remitting a whopping N3.2tn, being a part of oil minerals revenue collected on behalf of the country in 2014, to government.

However, while oil revenue is supposed to be a source of blessing to Nigeria, the manner in which the revenue is currently being managed and remitted to the federation account has been a major cause for concern. It’s believed that oil revenue accounted for N4.1tn out of the gross federation account revenue of N7.35tn.

The non-remittance of all revenues by the NNPC has become a recurring issue at monthly Federation Account Allocation Committee meetings.

This disagreement (had, in so many cases) led to states’ commissioners of finance walking out of the monthly FAAC meetings when revenues were about to be distributed to the three tiers of government.

FAAC members, comprising of commissioners of finance of the 36 states of the federation, the Federal Capital Territory, Abuja and representatives of the various agencies of government who convened on the federal ministry of finance were dismissed yesterday after the two-day meeting due to what sources described as “impunity” on the part of the nation’s oil company. Petroleum news gathered that members unanimously voted to reject the amount that was remitted by NNPC as revenue for the month of May. “The meeting was postponed to next week because the money NNPC submitted was too small compared to what they were expected to bring into the federation account for the month,” a source reviewed.

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