A Review of the Nigerian Energy Industry

NNPC to pay N450bn FAAC debt in 32 instalments

21 September 2011, Sweetcrude, Abuja- The Nigerian National Petroleum Corporation (NNPC) is to pay the N450 billion debt owed the Federation Accounts Allocation Committee (FAAC) in 32 instalments, with effect from this month, according to Minister of State for Finance, Dr Yerima Lawan Ngama, .

The Minister made the disclosure while briefing the media, after the rescheduled meeting of FAAC at the auditorium of the Federal Ministry of Finance, in Abuja, on Tuesday.

According to the minister, the matter was resolved long before the meeting which had in attendance state finance commissioners and auditor generals, representative of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), representatives from the Federal Inland Revenue Services (FIRS), Central Bank of Nigeria (CBN), the Nigerian Customs Service (NCS) and the Accountant-General of the Federation, Chief Jonas Ogunniyi.

Though the minister said the corporation had agreed to pay in 32 instalments, he, however, said FAAC and the NNPC had resolved that any lump sum that accrued to the NNPC would be used to pay part of the loan.

In the same vein, the three tiers of government shared a total of N607.023 billion as allocations for August, as against the N615.757 billion shared in July.

The Federal Government received N319.779 billion, representing 52.68 per cent; states got N168.266 billion (27.72 per cent), while the local government councils received N119.178 billion.

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