N450bn Debt: NNPC Yet to Pay FG

02 Jan 2013

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James Emejo 
Indications emerged that the Nigerian National Petroleum Corporation (NNPC) is yet to refund the Federal Government’s portion of the N450 billion it owed to the federation account.

THISDAY gathered that the Accountant General of Kogi State, Mr. Paul Audu, had queried the 32 installment of N7,617,431,250.00, which was being refunded by the corporation, noting that it would not be equal to the N450 billion being owed.

Amid the controversy over its indebtedness to the federation account in 2010, the NNPC had insisted that it was also being owed over N300 billion by the Federal Government.

The Federal Government, however, compelled the corporation to pay the debt in 32 instalment. It is currently refunding over N7 billion on a monthly basis-which Audu observed it won’t make up the whole amount.

However, Minister of State for Finance, Alhaji Yerima Ngama, had explained in a document obtained exclusively by THISDAY that the corporation, under a deal, was currently refunding N243 billion of the N450 billion, which was the share of the states, local governments and derivation states.

The minister said the Federal Government was not involved in the sharing of the current refund.

That, in a way, goes to confirm the indebtedness of the Federal Government to the corporation.

Meanwhile, the Federation Account Allocation Committee (FAAC) had also raised concern over the dwindling revenue from oil and gas, noting that it painted a gloomy picture of the state of affairs.

The committee, also noted that most of the funds were received in arrears.
It also emerged that the corporation has an outstanding sum of N635 billion to remit to the federation account till date.

Tags: Nigeria, Featured, Business, NNPC, FAAC

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