Failed FAAC Meeting: Finance Commissioners Go Hard On NNPC

• Seek lasting solutions to under remittals

BY EDMOND ODOK, ABUJA – Accusations of lack of accountability and transparency continue to trail the Nigerian National Petroleum Corporation (NNPC)’s operations and remittals to the Federation Accounts Allocation Committee (FAAC) with the Forum of State Finance Commissioners insisting that the Corporation can not continue to abuse financial due process without consequences.

According to the 36 State Finance Commissioners, the nation’s oil giant is duty-bound to explain and substantiate its claims that about N3.45 billion have been lost to pipeline vandalization and oil spillages across the country.

The Forum is however confidence that with the nation’s highest authorities involved in handling the contentious issue through the National Economic Council (NEC) and the 36 State governors, things must definitely take a new turn for the best.

Speaking through its Chairman, Alhaji Mahmoud Yunusa, the Forum said it decided to tackle frontally the contentious issue of perpetual under remittals by NNPC over the past months in order to ensure Nigerians are not shortchanged by the Corporation.

Alhaji Yunusa, who is the Commissioner of Finance, Adamawa State, said NNPC has to be accountable and demonstrate openness, especially as they relate to the issue of Royalty and Petroleum Profit Tax (PPT).

Addressing financial journalists on the failed FAAC meeting in Abuja at the weekend, Alhaji Yunusa said; “Our insistence on this is in the interest of Nigerians; it is in the interest of transparency and accountability. We want more explanation from the NNPC and DPR. They should justify this N3. 45 billion they claimed as losses and they have to follow due process.”

The Forum Chairman said the serious concerns are that NNPC’s remittals to the Federation Account were far better even when crude oil sold at 50 US dollars per barrel than the current price of almost 80 US dollars per barrel.

It therefore maintained that the worrying inconsistencies in figures remitted to FAAC have to be resolved urgently in the overall interest of the economy, adding that the Forum is determined to pursue the matter to its logical conclusion, particularly given the intervention of NEC and the Governors Forum.

On its handling of the current stalemate, the Adamawa State Finance Commissioner said though some States are hard pressed paying their workers’ salaries, the Forum agreed to step down the June FAAC meeting, noting that there may be pains in the process, but sacrifices must be made in order to address the issue wholesale and avoid the current situation where under payment by NNPC keeps recurring every month.