Furious FAAC delves into NNPC, demands details of fuel consumption by states
By Jeph Ajobaju, Chief Copy Editor
A detailed state-by-state consumption of Premium Motor Spirit (PMS), known as petrol, has been demanded from the Nigerian National Petroleum Company (NNPC) by the Federation Account Allocation Committee (FAAC) over subsidy brouhaha.
The directive is contained in the FAAC Post Mortem Sub-Committee (PMSC) final report submitted to the whole house at its meeting in Abuja in July.
“Consumption of PMS has been a major concern to members and it was raised severally at the FAAC plenary.
“Therefore, in order to ascertain the consumption, the Sub-Committee also requested the relevant agencies to submit the state-by-state consumption of PMS in the country for the year 2021,” the members said.
A FAAC member told The Nation that “the state governments have had enough of NNPC’s shenanigans and arrogance in its handling of revenue meant for the Federation Account.”
The NNPC has not remitted any amount o the Federation Account this year, claiming it spends all its revenue to pay for fuel subsidy.
The last FAAC meeting was explosive as state members took on the NNPC on fuel subsidy.
An ad-hoc committee was asked “to examine state-by-state consumption of PMS because of continuous deduction of the shortfall from the Federation Account; scrutinise Value Shortfalls (subsidy) deductions, and make appropriate recommendations to the FAAC Post Mortem Sub-Committee.
Before the last meeting in July, the NNPC was asked “to furnish stakeholders with details of the Sinking Fund Account and to pay interest accruable on the amount withheld in respect of Miscellaneous, Gas, Ullage, Osubi and WHT inflows from 2014 to 2021 (if any).”
The ad-hoc committee demanded to know from the NNPC why it kept revenue due to the Federation Account in a Sinking Fund Account for five years (2016- 2021).
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Defence of NNPC
In its response, the NNPC said:
“In 2015, Mr. President approved the utilisation of dividend stream and all recovered outstanding legacy debt from the operations of AFAM IV and Okpai JV Independent Power Projects (IPPs) by NNPC Gas and Power Investment Company (NGPIC) for funding of future investments in other power projects.
“In 2016 Shell Petroleum Development Company (SPDC) was advised with NNPC’s Sinking Fund Account pending the incorporation of NGPIC.
“All Proceeds from AFAM IV IPP being operated by SPDC were paid into this account in bulk.
“In the 2019 NEITI Audit exercise, it was realised that the proceeds received from AFAM IPP include other streams of revenue belonging to the Federation. After the Audit exercise, NNPC liaised and agreed with SPDC to segregate all payments made from 2016 into various streams.”
The NNPC said in 2020, it “secured management approval and transferred what belonged to Federation Account.
“NNPC advised SPDC to route all proceeds accruable to the Federation to the Oil and Gas Revenue Account with CBN while Power sales proceeds go into the NGPIC’s Account.
It was also disclosed that “the National Economic Council (NEC) reviewed the impact of terminated Strategic Alliance Agreement entered into by Nigeria Petroleum Development Company (NPDC) in 2011 and 2013.”
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