NNPC Makes U-Turn, Says FAAC Remittance Will Be Boosted

The Nigerian National Petroleum Corporation, NNPC, on Friday
reversed its decision to make zero contribution to the Federation
Account Allocation Committee, in the month of May, due to high cost
of petrol subsidy.

The Corporation in a statement by its Group General Manager,
Group Public Affairs Division, Dr. Kennie Obateru explained that
the shortfall in remittance will be remedied.

NNPC had in a letter to the Accountant General of the Federation
warned that it would not make any remittance to the Federation
Account Allocation Committee in the month of May after spending
N111.966 billion to subsidize petrol consumption in March.

NNPC’s Chief Financial Officer, Umar Isa in the letter explained
that the amount spent on subsidy in March would be net-off from oil
and gas revenue in April due in May leaving no balance for
FAAC.

Isa also projected that NNPC would only be able to remit just
N12.966 to FAAC in June also due to subsidy payment.

However, Obateru clarified in the statement that “the revenue
projection contained in the letter to the Accountant General of the
Federation being cited in the media pertains only to the Federation
revenue stream being managed by the Corporation and not a
reflection of the overall financial performance of the
Corporation”.

NNPC maintained that “it is conscious of its role and was doing
everything possible to shore up revenues and support the Federation
at all times.

“The shortfall will be remedied by the Corporation as it relates
only to the Federation revenue stream being managed by the NNPC and
does not reflect the overall financial performance of the
Corporation. The NNPC remains in positive financial trajectory for
the period in question,” Obateru stated.

He said NNPC would continue to pursue and observe “its cost
optimization process with a view to maximizing remittances to the
Federation Account”.

Dr. Obateru noted that the letter which “has fueled reports of
impending revenue shortfalls with dire consequences for the various
tiers of government”, was “inappropriately shared by unscrupulous
persons”.

NNPC assured that it would continue to meet its financial
obligations to the Federation.

The Nigerian National Petroleum Corporation, NNPC, on Friday
reversed its decision to make zero contribution to the Federation
Account Allocation Committee, in the month of May, due to high cost
of petrol subsidy.

The Corporation in a statement by its Group General Manager,
Group Public Affairs Division, Dr. Kennie Obateru explained that
the shortfall in remittance will be remedied.

NNPC had in a letter to the Accountant General of the Federation
warned that it would not make any remittance to the Federation
Account Allocation Committee in the month of May after spending
N111.966 billion to subsidize petrol consumption in March.

NNPC’s Chief Financial Officer, Umar Isa in the letter explained
that the amount spent on subsidy in March would be net-off from oil
and gas revenue in April due in May leaving no balance for
FAAC.

Isa also projected that NNPC would only be able to remit just
N12.966 to FAAC in June also due to subsidy payment.

However, Obateru clarified in the statement that “the revenue
projection contained in the letter to the Accountant General of the
Federation being cited in the media pertains only to the Federation
revenue stream being managed by the Corporation and not a
reflection of the overall financial performance of the
Corporation”.

NNPC maintained that “it is conscious of its role and was doing
everything possible to shore up revenues and support the Federation
at all times.

“The shortfall will be remedied by the Corporation as it relates
only to the Federation revenue stream being managed by the NNPC and
does not reflect the overall financial performance of the
Corporation. The NNPC remains in positive financial trajectory for
the period in question,” Obateru stated.

He said NNPC would continue to pursue and observe “its cost
optimization process with a view to maximizing remittances to the
Federation Account”.

Dr. Obateru noted that the letter which “has fueled reports of
impending revenue shortfalls with dire consequences for the various
tiers of government”, was “inappropriately shared by unscrupulous
persons”.

NNPC assured that it would continue to meet its financial
obligations to the Federation.