The meeting had ended in a deadlock on Tuesday following disagreement about the revenue figures remitted into the federation account by the Nigerian National Petroleum Corporation (NNPC) for sharing by the three tiers of government.
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“We condemn in strong terms the massive corruption going on in the management of fuel subsidy regime which the federal government had declared non-existent while billions of naira are deducted monthly at Federation Accounts Allocation Committee (FAAC) meetings,” the statement read.
The monthly meeting usually held to consider and approve revenue allocation to the three tiers of government was abruptly adjourned indefinitely when members found that the details of revenues actually remitted to the Federation Account for sharing did not add up to what was earlier presented to the FAAC Secretariat.
He said, “There was significant increase in revenue from export sales of $176.4 million due to an increase in crude oil production by 4.12 million barrels. However, the average price of crude oil decreased from $50.44 to $46.29 per barrel.”
“While the price rates of the minerals in the international market keep rising, the rates of the minerals in Nigeria remained constant at lower rates. Therefore, if all leakages are blocked, the sector can generate up to N500 billion.”
Crude oil production suffered due to leakages, sabotage, shut-ins and shut-downs at Terminals for maintenance and the Force Majoure declared at Forcados Terminal since February, 2016 subsisted.
The Federation Accounts Allocation Committee (FAAC) had in September 2011, resolved that the NNPC should refund over N450 billion in 32 installments after the NNPC said it withheld the money that should have been paid into the Federation Account as stipulated by law.
It noted that, “Previous issues of the NEITI quarterly review showed that disbursements in the first three quarters of 2016 were below the figures for the first three quarters of 2015. However, this trend was bucked in the fourth quarter of 2016, when disbursements climbed to N1.343tn, a nine per cent increase on the corresponding quarter of 2015.”
11 January 2015, Abuja – The Federation Accounts Allocation Committee shared a total sum of N7.75tn among the three tiers of government…