The Federation Account Allocation Committee (FAAC) has secured a commitment from the Nigerian National Petroleum Company Limited (NNPCL) to repay the N13.27 trillion it withheld from the federation account.
This resolution follows multiple meetings where NNPCL representatives were called to provide updates on the funds, and a request for installment payments was agreed upon.
Finance Minister and Coordinating Minister for the Economy, Mr. Wale Edun, and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, are set to meet with the Minister of State for Petroleum, Senator Heineken Lokpobiri, to discuss the details and timeline for the repayment process.
While FAAC remains hopeful that NNPCL will fulfill its commitment, concerns have been raised about delays and unclear responses from NNPCL representatives during meetings. To address these issues, higher-level discussions between ministers are deemed necessary.
The withholding of N13.27 trillion from the federation account by NNPCL has deprived the country of crucial revenue. Between January 2012 and May, NNPCL sold crude oil worth N26.496 trillion, but only N13.226 trillion was paid to the federation account.
During the period from January 2010 to December 2015, FAAC certified subsidy claims totaling N4.026 trillion, as reported by the Petroleum Products Pricing Regulatory Agency (PPPRA). However, no subsidy claims have been certified by FAAC since December 2015.
The next FAAC meeting is scheduled for later this month in Asaba, Delta State capital. NNPCL has expressed its commitment to collaborate with the Nigeria Extractive Industries Transparency Initiative (NEITI) and stakeholders in the reconciliation committee set up by President Bola Ahmed Tinubu to investigate, review, and reconcile financial records related to alleged indebtedness to FAAC. The company highlighted the financial strain caused by selling Premium Motor Spirit (PMS) at one-third of its value, leading to a substantial subsidy bill of N3.736 trillion as of May 31st, 2023.
