The Forum of Commissioners of Finance under the Federation Account Allocation Committee (FAAC) is demanding immediate action from the Nigerian National Petroleum Company Limited (NNPCL) on the remittance of about N200 billion to the federation account.
The forum says the NNPCL has made only one incomplete remittance of less than N200 billion to the federation account since October 2024, reports The Nation.
Dispute between the states and the organisation is blamed for the inability of FAAC to convene for its monthly meeting last week.
It is understood that both parties are in touch to resolve the issue.
Chairman of the Forum, Akin Oyebode, told our correspondent that “Subsidy ended in October 2024. Since then, NNPCL has only made one incomplete payment of under N200 billion to the federation.”
Oyebode said states and local governments need more resources to fulfill their obligations.
He explained that NNPCL is responsible for three types of payments: royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), taxes to the Federal Inland Revenue Service (FIRS) and dividends to the federation as its shareholder.
Due to NNPCL’s irregular remittances, a reconciliation of subsidy arrears is underway to determine whether the federation owes NNPCL or vice versa.
Oyebode stressed that until this reconciliation is concluded and a payment plan is agreed upon, NNPCL should fulfill its financial obligations to the federation.
On last week’s stalled meeting of FAAC, Oyebode said talks were ongoing to establish clear terms of engagement with NNPCL.
“If NNPCL presents a reasonable position, the meeting will hold soon. Commissioners are ready to return to Abuja,” he said.
Oyebode downplayed any notion of conflict, stressing that both parties were working towards a mutual agreement.
He described President Bola Tinubu’s subsidy removal policy as a catalyst for these financial discussions, which were previously impossible under the subsidy regime.
On resolving NNPCL’s inconsistent remittances, Oyebode expressed optimism that the reconciliation would be completed within weeks.
Once concluded, both parties will agree on a payment plan.
If it is established that the federation owes NNPCL, it may need to adjust its revenue allocation.
If, on the other hand, NNPCL owes the federation, it must propose a repayment plan.
Oyebode is hopeful that the matter would be fully resolved before the end of 2025.
The Chief Corporate Communications Officer, Mr Olufemi Soneye, who our correspondent contacted for a response had not responded to the message sent to him as at press time yesterday.
He was also yet to return the telephone calls made to him.
FAAC comprises the minister of finance as chairman, all state commissioners of finance, state accountants-general, the accountant-general of the federation and the permanent secretary of the federal ministry of finance and members meet every month to allocate federally collected revenues.
The federal government collects 52.68 per cent of the revenue, states 26.72 per cent and the 774 local governments 20.60 per cent.
