June 28, 2018

NNPC justifies N147bn June remittance to FACC


Group Managing Director of the NNPC, Dr Maikanti Baru

Group Managing Director of the NNPC, Dr Maikanti Baru

The Nigerian National Petroleum Corporation (NNPC) has justified its June remittance of N147 billion to the Federation Accounts and Allocation Committee (FAAC).

The Group General Manager, Group Public Affairs of the NNPC, Mr Ndu Ughamadu, said in a statement that the June remittance was in line with the terms of agreement it reached with governors on the matter.

Ughamadu explained that the agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC.

“This will be subject to sufficient funds from sales of domestic crude allocation for the corresponding month after meeting cash call obligations on Joint Ventures, (JV) deductions of petrol, cost under recovery and pipeline maintenance.“

He said NNPC was able to surpass the terms of agreement with the governors on the monthly remittance for June by N35 billion by taking from the fund meant for settling cash call obligations.

The NNPC spokesperson said the corporation ”regrets the governors’ additional request of N40 billion,” saying, it is unfortunate, given the fact that the corporation is set to exit the cash call phenomenon.(NAN)