Tinubu moves to resolve NNPC FAAC N2.1trn remittance dispute
President Bola Tinubu has taken a significant step to resolve the ongoing conflict between the Nigeria National Petroleum Company (NNPC) Limited and the Federation Account Allocation Committee (FAAC).
With over N2.1 trillion at stake, a specially appointed inter-agency committee will investigate and reconcile the allegations of non-remittance of funds into the federation account.
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In response to the allegations surrounding NNPC’s failure to remit funds into the FAAC account, President Tinubu has approved the establishment of an inter-agency committee.
The committee’s primary objective is to investigate and resolve the ongoing dispute between NNPC Limited and FAAC. The decision comes after Mr. President received reports from vested interests regarding NNPC Limited’s alleged refusal to pay into the federation accounts.
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Seeking to uncover the truth and ensure transparency, NNPC Limited management submitted a memo to the President, prompting the creation of the committee.
FAAC has accused NNPC Limited of neglecting to pay over N2.1 trillion to the federation account from crude sales, royalties, and taxes.
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On the other hand, NNPC Limited claims that the federal government owes it over N4.2 trillion in subsidy payments, power-related debts, and various charges.
To address these conflicting claims, the inter-agency committee will commence its proceedings at the Ministry of Finance. Its responsibilities will include investigating the debt owed by the federal government to NNPC and examining the alleged failure of NNPC to remit funds to the federation account.
The committee’s composition reflects its comprehensive nature, with members drawn from various government agencies. The Ministry of Finance, Nigerian Upstream Regulatory Commission (NUPRC), Federal Inland Revenue Service (FIRS), Office of the Accountant-General of the Federation (OAGF), and FAAC post-mortem sub-committee are all represented. By involving relevant stakeholders, the committee aims to ensure a comprehensive assessment of the allegations and counter-allegations related to the debts and remittances. The inclusion of these agencies will bring expertise, diverse perspectives, and accountability to the resolution process.
The establishment of the committee follows a formal appeal made by Mele Kyari, the Group Chief Executive Officer (GECO) of NNPC Limited, in a memo dated June 13, 2023. Kyari’s letter emphasized the urgent need for the President’s intervention in order to address and settle the conflicting claims made by both FAAC and NNPC Limited.
The memo highlighted the importance of resolving the disputes surrounding debts and remittances, with the committee serving as a platform for impartial investigation, reconciliation, and the establishment of a fair resolution.
President Bola Tinubu’s proactive approach in setting up the inter-agency committee demonstrates his commitment to transparency and accountability in resolving the NNPC and FAAC remittance dispute.
With N2.1 trillion at stake and the potential impact on the federation account, this committee’s efforts will shed light on the conflicting allegations, foster cooperation among government agencies, and facilitate a fair resolution for all parties involved.
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