Mohamed Garba
In a startling revelation, the Federation Account Allocation Committee (FAAC) has accused the Nigerian National Petroleum Company Limited (NNPCL) of withholding a staggering N13.27 trillion from the nation’s Federation Account.
The FAAC report, covering the period from January 2012 to May 2023, indicates that while NNPCL sold crude oil worth N26.496 trillion, only N13.226 trillion was remitted to the Federation Account, leaving a significant shortfall. The report further highlights that between January 2010 and December 2015, the Petroleum Products Pricing Regulatory Agency (PPPRA) certified subsidy claims totaling N4.026 trillion.
Notably, since December 2015, FAAC has not certified any additional subsidy claims, raising questions about the legitimacy of subsequent deductions made by NNPCL. In response to these findings, the federal government has initiated measures to recover the withheld funds.
FAAC has called upon the Minister of Finance and the Chairman of the Federal Inland Revenue Service (FIRS) to lead negotiations with NNPCL and the Ministry of Petroleum Resources to address the issue and ensure the remittance of the outstanding N13.27 trillion.
Attempts to obtain a response from NNPCL regarding the alleged withholding have been unsuccessful, as inquiries sent to the corporation have not been answered. This development has sparked widespread concern among stakeholders, given the critical role of oil revenue in Nigeria’s economy. The outcome of the ongoing negotiations and potential recovery of the withheld funds remain pivotal for the nation’s fiscal health.