The Nigeria National Petroleum Corporation (NNPC) has stated that state Governors insisted that the corporation must remit additional N40 billion after paying N147 billion to the Federation Account Allocation Committee (FAAC) for the month of June this year.
This was disclosed by the Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, in a message to journalists, following the deadlock at the FAAC meeting on.Wednesday.
He described the situation as “very unfortunate considering that NNPC is exiting the cash call phenomenon” adding that the agreement the NNPC has with the governors is that FAAC be given N112 billion monthly.
This, he said, however, will be subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of PMS cost under recovery and pipeline maintenance.
“Incidentally, due to the posture of governors, the NNPC was able to raise 147 billion Naira this month (June) for the Governors by taking from the amount meant for settling cash call obligations,” he said.
“Sadly, however, the Governors wanted additional 40 billion Naira.”