Stalemate In FAAC Meeting Over Unresolved N1.7trn Remittances

The Federation Accounts Allocation Committee (FAAC) meeting scheduled for Wednesday was postponed indefinitely following a dispute between state governments and the Nigerian National Petroleum Company (NNPC) Ltd over outstanding remittances.

State representatives boycotted the meeting, insisting that NNPC must first settle an estimated N1.7 trillion in pending revenues, which have remained unpaid since the full removal of the petrol subsidy in November 2024. It is unclear whether the meeting will be rescheduled later this week.

NNPC’s inability to remit the expected amount was attributed to several financial commitments, including crude swaps and forwards, which the company has been leveraging to sustain its operations. An official explained that these obligations have significantly impacted the company’s cash flow.

In response, the Federal Ministry of Finance swiftly issued a statement acknowledging the impasse, even as several state representatives had already left in frustration.

Director of home finance and FAAC secretary, Ali Mohammed, confirmed that a new date for the meeting would be announced.

“I am directed to inform you that the meetings of the Federation Account Allocation Committee (FAAC) for the month of February 2025 have been postponed.

“In light of this, I am further directed to inform you that a new date for the meeting will be communicated later, while the previously issued communique will be reviewed accordingly.

“The ministry regrets any inconvenience the postponement may have caused and extends the highest regards of the Honourable Minister of Finance and Coordinating Minister of the Economy,” the statement read.