The Nigerian National Petroleum Corporation has justified its June remittance of N147bn to the Federation Accounts and Allocation Committee, the News Agency of Nigeria reports.
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 N112bn to FAAC.
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“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, deductions on 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 N35bn by taking from the fund meant for settling cash call obligations.
The NNPC spokesperson said the corporation “regrets the governors’ additional request of N40bn,” saying, it is unfortunate, given the fact that the corporation is set to exit the cash call phenomenon.