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FAAC orders NNPC to remit withheld N450bn

By Oscarline Onwuemenyi
ABUJA—The Federation Account Allocation Committee, FAAC, yesterday, for the second time, ordered the Nigerian National Petroleum Corporation, NNPC, to appear before its next meeting to show reasons why it has consistently failed to remit to the committee, long outstanding crude revenue lodgments of over N450billion.

The Minister of State for Finance and Chairman of FAAC, Mr. Remi Babalola, told newsmen at the end of the committee’s meeting, yesterday, in Abuja, that, “We have summoned the NNPC to appear before the committee at the next meeting to lay before us the repayment schedule of the outstanding crude revenue.”

He said the N450 billion was the amount which the NNPC has failed to remit over the years, stressing that government would demand the repayment scheme without delay.

Meanwhile, the minister has disclosed that the total revenue distributable for November (including VAT) was N373.570bn.

The amount distributed among the tiers of government, Federal, States and Local Governments, showed an increase of N19.29bn or 5.44 per cent compared to the amount distributed in October, 2008.

The Minister also said the distributable statutory revenue for the month was N286.93 billion, which showed an increase of N121.306bn or 73.24 per cent compared to that of October

He attributed the increase to improved crude oil production, rise in Petroleum Profit Tax (PPT) collection due to payments rise.

Of the statutory revenue shared, the Federal Government got 52.72 per cent or N137.265 bn, state governments -26.72 per cent or N69.622bn, while the local governments got N53.67b or 20.50 per cent.

For the first time in many months, FAAC did not take money from the excess crude savings account, rather it deposited $95.347 million to the foreign component of the account, bringing its balance to $6.5bn while the domestic arm of the excess crude account has N6.5bn.

The minister assured that the government was committed to transparency and accountability in the management of the Federation Account.

He stated that members of the committee had ensured strict adherence to the enabling Act which mandated it to share allocations from the Federation Account to the three tiers of government in line with the extant laws of revenue allocation.

FG assures on aaccountability

He noted that all federally-collected revenues are paid monthly into the Federation Account which are approved and distributed among the three tiers of government by the committee.

According to him: “We have ensured strict adherence to this mandate by maintaining openness and fairness thus avoiding what can be described as the constant temptation of slipping into less regulated ways of wielding power, of becoming less democratic as we go along.”


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