Govs query NNPC over FAAC deductions
 National Economic Council, NEC, yesterday, at its monthly meeting, demanded explanations from Nigerian National Petroleum Corporation, NNPC, over unclear deductions the corporation made from Federation Account, which caused a stalemate at the Federation Account Allocation Committee, FAAC, on Wednesday.  State Commissioners of Finance, who converged on Abuja with the expectation to collect their states’ share of the monthly allocation, reportedly walked out of the FAAC meeting as they protested the deductions. From the left, Governor Akinwumi Ambode of Lagos State; Governor Tanko Almakura of Nasarawa State; Governor Mustapher Belo of Niger State; Governor Ibikunle Amosun of Ogun State; Governor Rotimi Akeredolu of Ondo State and other members of the Nigeruan Governor Forum during the audience the President had with members of the Nigerian Governors’ Forum at the Aso Chambers, State House, Abuja. 

Photo by Abayomi Adeshida 27/11/2017  The development, the Federal Government, through the Minister of Finance, Mrs. Kemi Adeosun, said will affect payment of salary to some states’ workers this month.  Adeosun, who chairs FAAC, brought the matter to the NEC at the Council Chamber, State House, Abuja, chaired by Vice-President, Yemi Osinbajo, with state governors, Central Bank governor, and others as members.  At the end of the NEC meeting, Adeosun told State House correspondents that NEC was not comfortable with the deductions, and had asked the NNPC to explain the circumstances sorrounding the development.  She said: “I gave an account that I give every month on the balances in our federation account, excess crude account and the stabilisation account, those are my routine updates.

“Items to note on the excess crude account is that in May, we had an additional credit of $80.6 million that accrued into the excess crude account.

“Also in my capacity as chairman of FAAC, I briefed governors on the deadlock that we have got currently in the federation account and explained what happened. And there was quite and extensive debate on what to do.

“For the purpose of this briefing, we operate NNPC as a business, we have invested public capital in that business and we have expectations of return and when that return fails lower than our expectations, then the owners of this business, which in this case is the Federal Government and states need to act.

“So, that was what caused the deadlock, yesterday, (Wednesday) and we really felt the figures the NNPC was proposing for FAAC were unacceptable.

“We felt that some of the costs couldn’t be justified and so we have decided that rather than approve the accounts, we will go back and do further work.

“So, further negotiations and interactions are going on with NNPC as we speak. However, we did brief the President and Vice President on the deadlock and asked for their support and forbearance in this because the consequence of this is that, salaries might well be delayed in many states as a result of this.

Governor Ifeanyi Okowa of Delta State, who briefed the press alongside Adeosun, disclosed that the NEC approved the financial report of the Nigeria Sovereign Investment Authority, NSIA, for 2016 and update for 2017.

He said the report indicated a positive profitability over the past five years, at about $8 million per year; and $1.25 million as assets at a rate of 6.6 percent return on assets.

He reported that since the inception of NSIA, it had been making profits in the past five years in all its funds, with core profits (excluding FX transaction gains) of N26.28 billion ($88 million) for the year.
Share To:

captain dozy

Post A Comment:

0 comments so far,add yours