It is ironical that NNPC declares profit amidst zero remittance to FAAC- Governors forum

Oredola Adeola

The Nigeria Governors Forum (NGF) has revealed that it is an irony for the Nigerian National Petroleum Commission (NNPC) to continue to declare profit, with zero remittance to the Federation Account Allocation Committee (FAAC).

Governor Kayode Fayemi of Ekiti State , who doubles as the NGF Chairman made this known on Thursday at the Governors’ forum session on natural energy, oil and gas at the fifth Nigeria International Energy Summit (NIES) on Thursday in Abuja.

EnergyDay’s findings show that NNPC’s subsidy deduction in the next six months could amount to N1.02 trillion. A figure which may not be remitted to the Federation Accounts Allocation Committee (FAAC) due to the planned extension of subsidy on Premium Motor Spirit (PMS).

Recall that NNPC had in January 2022, claimed that it spent N210.38 billion on subsidy or under-recovery for sales of petrol.

In 2021, NNPC deducted N1.43 trillion from FAAC as under-recovery or subsidy deduction, as it paid N270 billion for subsidy in December.

That deduction depleted NNPC’s remittance to FAAC to N542 billion from a projected N2.51 trillion accrueable revenue.

“The NNPC contributed zero to the federation account last month. This is not the first time.

“Of course, we know why; though the price of crude oil is going to about 110 dollars per barrel at the international market. The more it goes up, it seems like the more we suffer, ”

According to him, it was ironic that the NNPC continued to declare profit but made zero remittance to the Federation Account Allocation Committee (FAAC).

The Ekiti State Governor said governors were concerned about the growth of the industry, adding that transparency, accountability and governance were critical in achieving this objective.

He said the Petroleum Industry Act (PIA) was addressing some of the challenges facing the sector — though the governors had raised concerns regarding some of the provisions of the Act.

Rotimi Akeredolu, Ondo State Governor, who was represented by Rasaq Obe, the Ondo state commissioner for energy and mines, revealed that the country needs to end the petrol subsidy regime with immediate effect due to its unsustainability.

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