FAAC – States to Partake in Reconciliation of NNPC Figures

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Abuja — The various states of the federation will now be part of the reconciliation team of the Nigerian National Petroleum Corporation( NNPC) revenue for the federation account to avoid discrepancies .

The Chairman, Commissioners of Finance Forum and Adamawa State Commissioner for Finance, Mallam Mahmoud Yunusa, who disclosed this, said the NNPC owned up to the shortfall in its account which culminated in the call-off of the Federation Account Allocation Committee (FAAC) meeting penultimate week.

Yunusa, who spoke at the end of the FAAC meeting in Abuja thursday said: “They agreed there was shortfall in the earlier account given to us, but no fraud was intended. So going forward, we would be fully involved in the account.

“In the reconciliation that took place, some state governors were involved, a committee was raised by the National Economic Council (NEC).

“NNPC is own by federal government and states. Whatever revenue generated by the NNPC is shared by federal government and states. If you are managing my business and I’m not satisfied with the figures you are given me, I have the right to ask question. And NNPC admitted there were errors but the errors are not fraud intended.

“We would be fully involved in the process, our consultant will be involved going forward. So the disagreement is intended for agreement at the end of the day”, Chairman of Commissioners of Finance Forum said.

Meanwhile, the three tiers of government shared for November the sum of N532.758 billion.

The Permanent Secretary of the Federal Ministry of Finance, Dr. Mahmoud Isa Dutse, who chaired the session in place of Minister of Finance, Mrs. Kemi Adeosun, told the media that the sum N443.045 billion was statutory.

Under this tranche, the federal government got N205.700 billion, state governments got N104.334 billion, local governments received N80.437 billion, N40.847 billion was shared as 13 per cent derivation proceeds to went to the oil producing states, while N11.726 was set aside as cost of collection to revenue generating agencies and Federal Inland Revenue Services (FIRS) refund.

From Value Added Tax (VAT) disbursements, Isa-Dutse, stated that a total of N89.713 billion was shared with the federal government pocketing N12.919 billion, state governments went home with N43.062 billion, local governments were given N30.143 billion while N3.589 billion was set aside for cost of collection and FIRS refund.

Isa Dutse announced that funds in the Excess Crude Account (ECA) still stands at $2.308 billion.

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