NNPC justifies N147bn June remittance to FAAC

Kalu Kalu, Abuja


The Nigerian National Petroleum Corporation, NNPC, has justified the N147bn it remitted to the Federation Accounts and Allocation Committee (FAAC) this June, saying it was in line with the terms of agreement it reached with the governors on the matter.

In a statement, the Group General Manager, Group Public Affairs of the Corporation, Mr. Ndu Ughamadu, stated that the agreement NNPC had with the governors, was that the corporation would make a monthly remittance of  N112bn to FAAC.

“This was subject to sufficient funds from sales of domestic crude oil for the corresponding month, after meeting cash call obligations on Joint Ventures (JVs), deductions of Premium Motor Spirit (PMS), cost under recovery and pipeline maintenance,” he said.

He also stated that NNPC was able to surpass the terms of agreement with the governors on the monthly remittance for the month of June by N35bn, “having taken a cue from their postures by taking from the sum meant for settling cash call obligations.”

The corporation regretted the Governors’ additional request of N40bn, saying it was “unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.”