Reps to probe non-remittance of over N100bn June allocation

The House of Representatives on Tuesday unveiled plans to investigate the immediate and remote causes of non-remittance of over N100 billion oil revenue into the Federation Account over the past six months by
Nigeria National Petroleum Corporation (NNPC).

The resolution was passed sequel to the adoption of a motion of ‘urgent public importance’ on the need to ‘investigate the current under- remittances to the Federation Account by the corporation’, sponsored by Ossai Nicholas Ossai (PDP-Delta).

In his lead debate, Ossai expressed displeasure over NNPC’s failure to meet its financial obligation for the monthly Federal Accounts Allocation Committee (FAAC) meeting, where representatives of the Federal, States and Local governments shared funds accrued to the federation account.

While noting that NNPC has over the years defaulted in meeting its obligation, the Delta argued that the action of the Corporation has negatively impacted on government businesses across the country.

The lawmaker said he was aware that the issue was coming when crude oil price had risen appreciably in international market above the oil benchmark, implying that the slow pace of government activities was not caused by poor revenue from oil but likely as a result of some individuals not doing what they were supposed to do.

The Representatives member expressed concern that many less resources endowed states and local governments, depended on these allocations for monthly payment of salaries and allowances of their workers.

According to him the action of NNPC had led to the suffering of many Nigerian workers, as they were not able to get their salaries for the month of June.

While calling for the intervention of the House, Ossai noted that if necessary action is not taken, NNPC will rise up in no distant month to declare no revenue from the nation’s oil and gas business under its
care.

To this end, the House resolved to set up an Ad-hoc committee that will investigate the under-remittance to Federation Account as well as other sources of fund accrued to NNPC between January and June 2018, and report back to the House in two weeks for further legislative action.

Meanwhile, NNPC through its Group General Manager, Group Public Affairs Division, Ndu Ughamadu justified total sum of N147 billion June remittance to the Federation Accounts and Allocation Committee (FAAC), saying it is in line with the terms of agreement it had with Governors on the matter.
Ughamadu in the statement posted on the Corporation’s website explained that the agreement NNPC had with the governors was that the corporation would make a monthly remittance of N112 billion to FAAC subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call
obligations on JVs, deductions of Premium Motor Spirit (PMS)-cost under recovery and pipeline maintenance.
The release stated that NNPC was able to surpass the terms of agreement with the governors on the monthly remittance for the month of June by N35 billion, 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 N40 billion, saying it was unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.

KEHINDE AKINTOLA, Abuja

The post Reps to probe non-remittance of over N100bn June allocation appeared first on BusinessDay : News you can trust.