The Nigerian National Petroleum Corporation has alerted the federal and state governments to its dwindling contribution to the federation account as a result of the bloated fuel subsidy.
It said it would only be able to remit N12.966bn to the Federation Accounts Allocation Committee in June after removing fuel subsidy from its income.
The corporation, which stated this in a document titled, ‘January to March actual and April to June projected remittance to federation account,” indicated that it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.
The document, which was attached to a letter written to the Accountant General of the Federation, was dated April 26 and signed by the NNPC’s Chief Financial Officer, Umar Isa.
In the letter, copies of which were sent to the Minister of Finance, Budget, and National Planning; the Director-General of the Nigeria Governors’ Forum; the Director, Home Finance; and the Chairman, Commissioners of Finance Forum, the corporation explained how fuel subsidy had been affected its revenue to FAAC.
FAAC committee, which meets monthly to share funds among federal, state and local governments, consists of the finance minister, state commissioners of finance, state accountants-general, accountant-general of the federation and the permanent secretary of the Federal Ministry of Finance.
The money shared at FAAC comes from revenues generated by the Nigeria Customs Service, the Federal Inland Revenue Service and the NNPC. However, Nigeria’s oil corporation is the highest contributor as crude oil is the biggest source of revenue for the country.
Recall that a statement by the Edo State Governor, Godwin Obaseki, that the Central Bank of Nigeria printed N60bn to augment the March allocation following a shortfall in revenue generated controversy with the Federal Government denying the allegation.