FAAC Deadlock: NNPC has questions to answer on remittance, Salaries may be delayed, says NEC

FAAC Deadlock: NNPC has questions to answer on remittance, Salaries may be delayed, says NEC

Minister of Finance, Kemi Adeosun, has explained that if the issues that led to the Federation Accounts and Allocation Committee (FAAC) meeting with governors that ended in a deadlock was not resolved, salaries might be affected in the states.

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According to her, committee members of FAAC felt that some of the costs presented by the Nigerian National Petroleum Corporation (NNPC) could not be justified hence they decided that rather than approved the accounts, the negotiations should continue until agreements reached.

According to her, President Muhammadu Buhari and Vice President Yemi Osinbajo had been fully briefed and had supported the Ministry of Finance and the commissioners of finance not to approve those accounts until further explanations on some of the costs being implemented were given.

The revenue sharing meeting had ended in a deadlock on Wednesday for the third time since January 2018.

The National Economic Council (NEC), presided over by Vice President Yemi Osinbajo, had demanded explanations from the NNPC for unclear costs the corporation made from FAAC.

State Commissioners of Finance, who had converged in 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.

Adeosun, who chairs FAAC, said she brought the matter to the NEC chaired by Osinbajo, with State Governors, the Central Bank Governor, and others as members.

At the end of the NEC meeting, Adeosun told State House correspondents that the NEC was not comfortable with the costs presented, and had asked the NNPC to explain the circumstances around the development.

According to her: “Also in my capacity as chairman of FAAC, I briefed governors on the deadlock that we have got into 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 both Mr. President and Mr. Vice President on the deadlock and asked for their support and their forbearance in this because the consequence of this is that, salaries might well be delayed in many states as a result of this.

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