NNPC Reacts On FAAC Revenue Sharing Controversy

The Nigerian National Petroleum Corporation (NNPC) on Thursday said it did nothing wrong with the amount it deposited for distribution to the three tiers of government in June.

The NNPC was responding to the decision of the Federation Accounts and Allocation Committee (FAAC) not to share the available money during its meeting on Wednesday allegedly because the NNPC did not remit sufficient funds.

On Wednesday, the FAAC meeting ended in Abuja in confusion with members refusing to share allocations for the month.

No member of the committee agreed to talk to journalists as they hurriedly left the auditorium of the finance ministry, venue of the meeting.

But, in a statement issued by NNPC’s spokesperson, Ndu Ughamadu, and sent to reporters the corporation said the N147 billion revenue remitted to FAAC for sharing to the three tiers of government in June was “in line with the terms of agreement it had with governors on the matter.”

Mr Ughamadu said the agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112billion only to FAAC.

He said the remittance was subject to sufficient funds from its sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on Joint Venture (JVs), deductions of Premium Motor Spirit (PMS)-cost under recovery and pipeline maintenance.

The NNPC spokesperson said the 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.

“The corporation regretted the governors’ additional request of N40billion. It was unfortunate, given the fact that NNPC is set to exit the cash call phenomenon,” Mr Ughamadu said in the statement.

Following the abrupt end of the meeting on Wednesday, the chairman of the Commissioners of Finance Forum of FAAC, Mahmoud Yunusa, told reporters members were breaking to go to enable them go and consult with their principals – the state governors – on the next line of action.