NNPC Justifies N147Billion June Remittance to FAAC
The Nigerian National Petroleum Corporation (NNPC) has justified its N147billion 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.
A release by NNPC Group General Manager, Group Public Affairs, Mr. Ndu Ughamadu, stated that the agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112billion to FAAC subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month 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 N35billion, having taken a cue from their postures by taking from the sum meant for settling cash call obligations.
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. When our Correspondent sought to know the abrupt indefinite shift of the meeting yesterday, it was 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 who does not want his name mentioned said. The source further said that a message was sent to NNPC to come and explain reason for the shortage or bring the balance before they will agree to share the month’s revenue. No official explanation was given for the shifting of the meeting.The minister of Finance, Mrs Kemi Adeosun was not at the meeting. Chairman of the Nigerian Commissioners Forum, Mr Mahmood Yunusa was quoted as saying that the commissioners were going back to report to their various governors. It was also gathered that the governors are planning to hold meeting with the NNPC leadership over the issue.