In a significant move, the Federation Account Allocation Committee (FAAC) has secured a commitment from the Nigerian National Petroleum Company Limited (NNPCL) to repay the substantial sum of N13.27 trillion it withheld from the federation account. Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacch Adedeji, are scheduled to meet with Minister of State for Petroleum, Senator Heineken Lokpobiri, to strategize the execution of the repayment process.
A reliable FAAC official, speaking on condition of anonymity due to lack of authorization, revealed, “Several meetings have taken place where representatives of the NNPCL were summoned to provide updates on the funds. The request for installment payments was agreed upon, but feedback from superiors at NNPCL is still pending. NNPCL consistently sends different representatives to FAAC meetings without providing clear answers on when the repayment will occur, causing delays and unresolved issues. This has prompted the need for higher-level discussions between ministers.”
The FAAC expresses optimism that the NNPCL will fulfill its commitment and return the withheld funds. The Minister of Finance and the FIRS boss, both former FAAC members as finance commissioners in Lagos and Oyo states, are expected to lead negotiations with NNPCL and the Ministry of Petroleum.
The withholding of N13.27 trillion by the NNPCL has significant repercussions, depriving the country of crucial revenue. Between January 2012 and May, the NNPCL sold crude oil totaling N26.496 trillion, of which only N13.226 trillion was remitted to the federation account. FAAC certified N4.026 trillion in subsidy claims from January 2010 to December 2015, as determined by the Petroleum Products Pricing Regulatory Agency (PPPRA). Notably, no subsidy claims have been certified by FAAC since December 2015.
The NNPC Ltd has pledged ongoing collaboration with the Nigeria Extractive Industries Transparency Initiative (NEITI) and other stakeholders in the reconciliation committee initiated by President Bola Ahmed Tinubu. The committee aims to investigate, review, and reconcile financial records concerning the alleged indebtedness to FAAC. Mr. Olufemi Soneye, Chief Communication Officer of NNPC Ltd, refuted calls by a non-governmental organization for a probe into various monies reportedly owed to the federation by the national oil company. NNPC Ltd highlighted the burden of selling Premium Motor Spirit (PMS) at one-third of its value, incurring an average monthly subsidy bill of N400 billion, leading to an accumulated subsidy bill of N3.736 trillion as of May 31, 2023.
