RMAFC Engages NNPC On Revenue Increase, Leakages

BY EDMOND ODOK, ABUJA – In a move aimed at addressing the constant frictions and disagreements over Nigerian National Petroleum Corporation (NNPC)’s skewed remittances into the Federation account, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is committing to robust engagement with the oil giant on revenue leakages and improved accruals to the national purse.

Positive signals to this effects emerged during when both organisations met to share experiences and address evident challenges affecting optimal revenue generation into the Federation account from the oil sector.

Over the years, stakeholders in the Federation Account Allocation Committee (FAAC) have always been at loggerheads with the NNPC over its alleged jaundiced monthly remittances into the Federation account purse.

However, the Chairman of RMAFC, Engineer Elias Mbam dropped the hints of a likely better days ahead after hosting the Group Managing Director (GMD) of NNPC, Mallam Mele Kyari, in Abuja recently.

According to Mbam, engagement with the NNPC team was also informed by the need to urgently proffer solutions to existing challenges of continuous revenue shortfalls, particularly given the fluctuating prices in the global oil market as well as decline in national production output.

Engineer Mbam said given obvious challenges associated with dwindling federally generated revenue and the need to urgently shore up things, RMAFC decided to engage NNPC as one of the strategic income generating agencies of government with significant inputs in growing the Nation’s economy.

He explained that current moves are against the backdrop of existing and emerging economic challenges occasioned by the rampaging COVID-19 global pandemic in the 2020 fiscal year.

The RMAFC Chairman however expressed the hope that its constant engagement and collaboration with the oil Corporation would help address all noticeable challenges and thereafter make them become a thing of the past.

In his comments, the NNPC Group Managing Director, Mallam Mele Kyari, lauded President Muhammadu Buhari for backing the Corporation in its desire to maximize revenue generation into the Federation account.

Kyari said among the Corporation’s pressing challenges is the drop in crude oil production figure from 2.4 million barrels per day to the current 1.6 million barrels per day in line with the current OPEC production output.

According to him, the development has exposed the Corporation to current harsh realities in the global oil market.

The NNPC Chief however said respite has come from the gas economy which is now a welcoming source of revenue through its increased domestic and industrial demands.

He also applauded the Chairman and members of RMAFC for opening up close interaction with the NNPC that would ensure both organizations brainstorm and chart the way forward for the oil Corporation to remain relevant in driving Nigeria’s revenue generation processes.