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Okechukwu Nnodim, Tony Okafor, Hindi Livinus and Ada Wodu
Published 29 April 2021
Published 29 April 2021
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.
More trouble for Nigeria as fuel subsidy wipes off oil revenue
The announcement by the NNPC will have telling consequences for the nation s economy.
The
Nigerian National Petroleum Corporation (NNPC) has said that it will remit nothing into the federation account in the month of May due to costs incurred from subsidy payments on petrol.
The NNPC made this known in a letter written to the Accountant-General of the Federation, where it explained that it recorded a value shortfall of N111bn in February 2021.
The shortfall, the NNPC said, will affect its contributions to federal allocations to states for April and May.
More trouble for Nigeria as revenue wiped off by fuel subsidy premiumtimesng.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from premiumtimesng.com Daily Mail and Mail on Sunday newspapers.
By Onyebuchi Ezigbo
Efforts to resolve the lingering industrial action by judicial and legislative workers over their agitations for financial autonomy for state judiciaries and legislatures were stalled yesterday following the inability of the federal government and state governors to meet to harmonise their positions.
However, a source confided in THISDAY that the meeting of federal government officials and representatives of the Nigeria Governorsâ Forum (NGF) will reconvene today to harmonise positions on the implementation of financial autonomy for statesâ legislatures and judiciaries.
THISDAY gathered that the disagreement stalled yesterdayâs bid to resolve the judicial and parliamentary workersâ strike as the government team and the striking workers could not meet as scheduled because of the differing positions of the federal government and the governors.
The Federation Accounts Allocation Committee (FAAC), shared the sum od N680 billion among the three tiers of government Thursday.
The money was from the revenue that accrued to the federation in the month of March, which has been distributed to enable government meet its financial obligations for the month of April.
An official of the Federal Ministry of Finance, Budget and National Planning who disclosed the amount distributed, did not provide details of what each tier of government received.
He said that top officials of the ministry and the FAAC were preparing the Communique/statement.
However, as at the time of filing this report at about 10.42 pm, the Communique had not been released.