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NNPC to meet with VP Osinbajo over FAAC

The Nigerian National Petroleum Corporation, NNPC, has disclosed that it would be meeting with Vice President Yemi Osinbajo, to address the issue of remittances to the Federation Account that caused the suspension of the Federation Account Allocation Committee, FAAC, meeting.

In a text message in Abuja, Group General Manager, Group Public Affairs Division of the NNPC, Mr. Ndu Ughamadu, said the decision to address the issue with the Vice President was due to the stance of the state commissioners of finance. He said, “The issue will be resolved with the Vice President who chairs the National Executive Council, NEC.”The NNPC had on Thursday, accused state governors of making unnecessary demands, stating that the Governors are asking the corporation to remit additional N40 billion to the Federation Account Allocation Committee, FAAC.

Ughamadu had disclosed that the fresh demand was in breach of the agreement it had with the governors. According to him, the NNPC had agreed with the governors to make a monthly remittance of N112 billion to the FAAC, but the NNPC was able to exceed the amount by N35 billion, bringing its remittance in June 2018 to N147 billion. Ughamadu further described the demands of the governors as unfortunate, especially as the NNPC had to secure the extra funds from amount meant for meeting its Joint Venture cash call obligations.

He said, “The NNPC N147 billion June remittance to the Federation Accounts and Allocation Committee (FAAC), is in line with the terms of agreement it had with governors on the matter. “The agreement NNPC 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 after meeting cash call obligations on JVs, deductions of Premium Motor Spirit (PMS)-cost under recovery and pipeline maintenance.

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 N40 billion. It is unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”

The monthly Federal Accounts and Allocation Committee, FAAC, meeting, scheduled to hold Wednesday, was rescheduled as members failed to reached agreement on certain issues, especially on remittances by the NNPC. Briefing newsmen after several hours of waiting, the Director Information in the Ministry Of Finance, Hassan Dodo said the meeting ended inconclusive and had been rescheduled for another date.

He said, “We are sorry for the inconvenience this may cause you, but be rest assured you will be re-invited for the briefing on a later date.” With this development, workers’ salary at both 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.

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