The Nigerian National Petroleum Corporation (NNPC) has explained reason meeting of Federation Accounts and Allocation Committee (FAAC) ended in a stalemate on Wednesday.
The meeting holds monthly to share allocation for each tier of Government.
This is the third time since January the meeting will end in deadlock on Wednesday.
In a statement released on Thursday by Ndu Ughamadu, NNPC’s Spokesman said the corporation made an agreement with governors to make a monthly remittance of N112billion to FAAC subject to sales of domestic crude oil allocation for the corresponding month.
This, he said, would happen after NNPC meets its cash call obligations on joint ventures (JVs), as well as deductions of the cost of petrol under recovery and pipeline maintenance.
“NNPC was able to surpass the terms of the 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 statement read.
“The corporation regretted the governors’ additional request of N40billion, saying it was unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”
Maikanti Baru, group managing director, NNPC had in May said the corporation was faithfully remitting all revenues accruing to it to the federation account.
“While the process of audit and reconciliation of accounts is on, a lot of accusations of short payments and non-remittances are usually traded, we endeavour to keep our cool on these allegations because we know that we remit whatever is due to the federation account,” the GMD had said.
Chaired by Kemi Adeosun, other members of the committee are the accountant-general of the federation, Ahmed Idris, commissioners for finance from the 36 states; representatives of revenue- generating agencies such as the Federal Inland Revenue Service, the Nigeria Customs Service and the NNPC.