FAAC: States abort meeting over N37.76bn shortage in NNPC’s revenue as Adeosun calls emergency meeting with NNPC GMD

The monthly Federal Account Allocation Committee (FAAC) meeting, which began on Tuesday was inconclusive due to discrepancies of about N37.76 billion in revenue presented by the Nigerian National Petroleum Corporation (NNPC).
The Accountant-General of the Federation, Mr Ahmed Idris told newsmen in Abuja, that the meeting was inconclusive because of irregularities in figures presented by the NNPC.
“Obviously, you are all aware that anything that has to do with federation revenue is statutory and, therefore, constitutional and we must always verify our figures to the last kobo.
“Failing to do so will amount to committing illegality and unconstitutionality.
“It is on this note that we observe some issues in the figures given by one of the major revenue generating agencies namely the NNPC.
“The committee is of the opinion that until and unless these figures are reconciled, corrected, verified and factual; we cannot distribute the revenue as the case is.
“Let me again be quick to inform Nigerians that we are sensitive with the issue and to the fact that state governments may find it difficult without this money.
“But we have to follow the constitution and the laws for distribution of revenue,’’ he said.
Also, the Chairman, Forum of FAAC Commissioner, Mr Mahmoud Yunusa, said the forum rejected the amount presented by the NNPC because it was far lower than what was projected for the month.
He argued that if the NNPC could not surpass what they presented in February, then they should not present anything less than what they presented the previous months.
“We started this meeting last week and NNPC did not submit their figures until yesterday (Monday), which we were not able to review until this morning.
“This morning when we were reviewing the figures as presented by the NNPC, it came as a great surprise to see that the amount was less than N100 billion.
“So we (states) decided that we will not collect the amount presented. We are contesting the figures because pipeline vandalism has reduced, while crude oil prices have continued to go up.
“On this note, we are wondering why the nation cannot raise enough money through that sector to share to states so that everyone can pay workers, contractors and so on.
“We are well aware that this development may affect the payment of salaries in states, but we cannot hurriedly accept this money and then later cry foul play.
“So, we should all be patient. But we hope that with this latest development, NNPC will do the needful as soon as possible,’’ he said.
The NNPC paid in N74.06 billion into the federation account as oil revenue generated in the month of February, to be shared in March.
“Compared to the collection of N111.84 billion in Jan. 2018, the February collection of N74.06 billion is lower by N37. 76 billion or 33 per cent.
“We were unable to meet the approved budget as a result of low collection from Concession Rentals and Petroleum Sharing Contracts (PSC) Royalty.
“We wish to note that the sum of N30.5 million for the Misc Oil revenue and N6.11 million for Gas Flared are on transit at the end of Feb. 2018.
“Furthermore, we received 16. 56 million dollars out of the 85.94 million dollars expected from PSC and MCA lifting for the month under review, therefore leaving 68.65 million dollars as outstanding,’’ NNPC said.
Meanwhile, Finance Minister, Mrs Kemi Adeosun, said she is meeting with the NNPC GMD over discrepancies in payment into the Federation Account.
This is coming after the inconclusive FAAC meeting.
Adeosun, who is also the Chairman of FAAC, said she called for an emergency meeting next week with the Group Managing Director of NNPC, Mr Maikanti Baru and other key management staff over revenue payment into the Federation Account.
The Minister, in a statement made available to newsmen by her Senior Adviser on Media and Publicity, Mr Oluyinka Akintunde assured Nigerians that the FAAC meeting would hold on Wednesday at 9. a. m.
She said that the Accountant General of the Federation, Commissioners of Finance and Accountant-Generals of the 36 States would also be present at the meeting.
Similarly, she said that other representatives of the NNPC, Federal Inland Revenue Service, Nigeria Customs Service, Department of Petroleum Resources would also be at the meeting.