{"id":10364,"date":"2017-11-27T20:30:08","date_gmt":"2017-11-27T20:30:08","guid":{"rendered":"http:\/\/disnaija.com\/?p=10364"},"modified":"2017-11-29T00:54:56","modified_gmt":"2017-11-29T00:54:56","slug":"nnpc-fails-to-remit-n1-7tr-into-federation-account","status":"publish","type":"post","link":"https:\/\/disnaija.com\/nnpc-fails-to-remit-n1-7tr-into-federation-account\/","title":{"rendered":"NNPC Fails To Remit N1.7tr Into Federation Account"},"content":{"rendered":"

The Federation Account Allocation Committee (FAAC) meeting was called off last Thursday over the non-remittance of about N1.78 trillion into the government\u2019s coffers by the Nigerian National Petroleum Corporation (NNPC), The Nation <\/em>learnt yesterday.<\/p>\n

About N1.32trillion of the outstanding was unpaid by the NNPC during former President Goodluck Jonathan\u2019s administration.<\/p>\n

The whereabouts of the cash remains unknown.<\/p>\n

Also, from January 2016 to September 2017,\u00a0 NNPC\u00a0 has about N460. 649bilion yet to be remitted into the Federation Account.<\/p>\n

The states have queried why such\u00a0 huge cash from crude oil sales revenue will be tagged \u201coutstanding\u201d\u00a0 by NNPC since 2010.<\/p>\n

They also demanded an update from the NNPC on about $ 172,913,617.30million outstanding payments from the NLNG Feedstock sales, Chevron Cheetah Project, Royalty Oil Sales Value lifting by TEPNGA MCA, RDP Price Review and others.<\/p>\n

But, the Minister of Finance, Mrs. Kemi Adeosun, who inherited the challenge of reconciliation between the states and NNPC at the FAAC, is said to be addressing\u00a0 the matter.<\/p>\n

The minister, who is determined to bring the states back to the FAAC meeting, may also address the press on the stalemate.<\/p>\n

The NNPC is insisting that\u00a0 FAAC owes it about N797billion, being cost of product and pipeline losses.<\/p>\n

It has asked the FAAC to give it a three-month grace to compile the lost data from its area offices\u00a0 as demanded by states and to complete a forensic audit of same.<\/p>\n

Although the three-month period will lapse by the end of November, the states\u00a0 are insisting that there will be no FAAC meeting until the non-remittance of the N1.78trillion is resolved.<\/p>\n

Investigation revealed that the states had raised concerns over the NNPC\u2019s outstanding N1.78trillion at the FAAC Post-mortem Sub-Committee meeting on October 23 but the Federal Government did not know that it would degenerate to a likely boycott of the FAAC meeting last Thursday.<\/p>\n

According to a document, which was obtained by The Nation<\/em>, the FAAC analysis for October 2017 fuelled the anger of the cash-strapped states.<\/p>\n

The analysis, which was prepared by\u00a0 the FAAC Post-mortem Sub-Committee meeting, raised eight issues for the NNPC to clarify. They include the non-payment of N1.78trillion into the Federation Account.<\/p>\n

In the document, signed by the Chairman, FAAC Post-mortem Sub-Committee, Dr. Casimir I. Anyanwu, the committee gave the highlights of NNPC\u2019s outstanding payments into the Federation Account during Jonathan administration and under the current administration.<\/p>\n

About N1.32trillion revenue from 2010 to 2015 is yet to be remitted by NNPC; about N460.649 has been unpaid between January 2016 and September 2017 bringing the total to N1.78trillion.<\/p>\n

The document said: \u201cThe Gross Domestic Crude Revenues between 2010 and 2015\u00a0 amounted to N5, 351,114, 508, 433.79(trillion); the PPPRA\u2019s certified NNPC subsidy from 2010 to 2015 was N4, 026, 369, 698, 361.62(trillion) and the Net outstanding revenues due to Federation is N1,324,744, 810,072.12(trillion).<\/p>\n

\u201cThe statement of NNPC Gross Domestic Crude Oil Sales Revenue due to Federation Account for the period January 2016 to September 2017 is as follows: Crude Volume(220, 619,908); Value of domestic crude purchase (N2,573,022, 429, 022.30 trillion); NNPC payment to the Federation Account(N2,112, 373, 341, 362.49 trillion); Gross Outstanding due to the Federation Account (N460,649,087,660.12 billion).\u201d<\/p>\n

The NNPC is said to be holding on to some outstanding payments because FAAC is yet to refund the N797billion it incurred as product and pipeline losses.<\/p>\n

But this claim has been faulted by states because there is no proof from the oil giant.<\/p>\n

All the stakeholders are said to be demanding a forensic audit of NNPC\u2019s losses and how these led to the N797billion bill.<\/p>\n

Another document added: \u201cOn the product loss and pipeline repairs which NNPC was claiming, the Ad-hoc Committee recommended to the Sub-Committee to visit NNPC in order to:<\/p>\n