The monthly Federation Account Allocation Committee (FAAC) meeting for this month could not be concluded yesterday after days of postponement over what was described as under remittance of the Nigerian National Petroleum Corporation (NNPC) to the federation account.
The meeting comprises of all the commissioners of finance of the federation and representatives of federal government agencies including revenue generating agencies.
The Accountant General of the Federation, Alhaji Ahmed Idris, who chaired the meeting told reporters that the meeting was abruptly shifted indefinitely to allow for time to address the issues of under remittances by the NNPC. Official source in the Accountant General’s office said NNPC did not remit up to N100 billion as expected.
Idris said: “Let me be quick to tell you that the meeting was inconclusive because issues around reconciliation of figures are on the table. The meeting has not been concluded and we will look at the revenue figures as submitted by the NNPC and reconcile such figures and upon conclusion of the reconciliation of that figure, we will share the revenue accordingly.”
Idris also said the committee must always verify our figures to the last kobo failing which he noted would mean it is committing illegality and unconstitutionality. “It is on that note that we observed some issues in the figures given by one of the major revenue generating agencies namely the NNPC and 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,” he said.
According to figures obtained by LEADERSHIP, what NNPC remitted as revenue collected in February for sharing in March was far below what it remitted in February when prices of oil was even high and there were no cases of pipeline vandalism within the period. The sum of N74,067,185,437.92 as remitted by the corporation in for March.
Compared to the collection of N111,835,458,519.12 in January, 2018, the N74,067,185,437.92 – February collection was lower by N37,769,273,081.20 or 33 per cent. “We were unable to meet the approved budget as a result of low collection from Concession Rentals and PSC Royalty. The total sum collected in the month is N74,067,185,437.92 and N74,125,881,872.90 was transferred to the Federation Account,” the corporation said in a letter to the Accountant General.
NNPC which said the transfer for January is inclusive of N95,317,169.27 outstanding in January 2018, however explained that “We wish to note that the sum of N30,507,794.19 for the Misc. Oil revenue and N6,112,940.10 for Gas Flared are in transit as the end of February 2018,” it said in some documents that were obtained by our reporter.
If the meeting was held, the total sum of NN647.390 billion was proposed for sharing for the month of March, LEADERSHIP learnt. Idris who failed to state when the meeting will be reconvened simply said, “As soon as possible, as we leave here, we are going to embark on the exercise because we feel time is of the essence.”
Chairman, forum of FAAC Commissioners, Mahmoud Yunusa in his reaction said the meeting was not held last week because NNPC failed to submit their figures until yesterday (Monday) which they 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 decided that we will not collect the figures presented, that we will contest it.’’