The Forum of Commissioners of Finance, under the Federation Account Allocation Committee (FAAC), is urging the Nigerian National Petroleum Company Limited (NNPCL) to take immediate action and remit around N200 billion to the federation account. This demand highlights the commissioners’ concerns about the delayed remittance, which is crucial for the financial stability of state governments.
According to the forum, the NNPCL has made a single, incomplete payment of less than N200 billion to the federation account since the fuel subsidy ended in October 2024.
The disagreement between the states and the NNPCL has been cited as the reason for the Federation Account Allocation Committee (FAAC) failing to hold its regular monthly meeting last week.
It is understood that both parties are in touch to resolve the issue.
Chairman Akin Oyebode revealed that since the fuel subsidy ended in October 2024, the NNPCL has made only one partial payment of less than N200 billion to the federation. This statement highlights the concerns surrounding the NNPCL’s remittance delays, which have significant implications for the financial stability of state governments.
Oyebode stressed that states and local governments require more resources to fulfill their obligations to the citizens.
The Nigerian National Petroleum Company Limited (NNPCL) has three key financial obligations. Firstly, it pays *royalties* to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Secondly, it remits *taxes* to the Federal Inland Revenue Service (FIRS). Lastly, as a shareholder of the federation, NNPCL also pays *dividends* to the federation.
Due to NNPCL’s irregular remittances, a reconciliation of subsidy arrears is underway to determine whether the federation owes NNPCL or vice versa.
Oyebode stressed further that until this reconciliation is concluded and a payment plan is agreed upon, NNPCL should fulfill its financial obligations to the federation.