28 June 2018, Sweetcrude, Abuja — The Nigerian National Petroleum Corporation (NNPC), Thursday, accused state governors of trying to breach the agreement reached between it and the states concerning remittances to the Federation Account Allocation Committee (FAAC).
The NNPC, in a statement in Abuja by its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu, said it had reached an agreement with the governors to remit N112 billion to FAAC on a monthly basis, while he lamented that despite the fact that it was able to surpass June 2018 remittance by N35 billion, the governors are still making an additional request of N40 billion.
He said, “The NNPC has justified its N147 billion June remittance to the Federation Accounts and Allocation Committee (FAAC), as it is in line with the terms of the agreement it had with governors on the matter.
“The agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of Premium Motor Spirit (PMS)-cost under recovery and pipeline maintenance.
“NNPC was able to surpass the terms of the agreement with the governors on the monthly remittance for the month of June by N35 billion, has taken a cue from their postures by taking from the sum meant for settling cash call obligations.
“The corporation regretted the Governors’ additional request of N40billion. It is unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”