- Â Says June FAAC remittance was overpaid by N35bn
- Â DPR indicates gas flare in Nigeria now down to 9%
By Chineme Okafor in Abuja
The Nigerian National Petroleum Corporation (NNPC) on Thursday alleged that governors of the 36 states of the federation were making requests on it to transfer an extra N40 billion for them to share in the Federation Account Allocation Committee (FAAC).
It said the request was despite its remittance of N147 billion to the FAAC in June for sharing by the three tiers of government, adding that the extra request by the governors was against the terms of an agreement it had with them on the matter.
According to a statement from the Group General Manager, Group Public Affairs of the corporation, Mr. Ndu Ughamadu, in Abuja, both parties reportedly reached an agreement that the NNPC would make a monthly remittance of N112 billion to FAAC subject to sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on joint venture operations, as well as deductions of petrol-cost under recovery and pipeline maintenance.
Ughamadu however noted that for the June remittance, the NNPC was able to surpass the terms of the agreement with the governors, and paid the monthly funds by over N35 billion.
He explained that the corporation’s decision to make the excess payment above the agreed sum was based on the postures of the governors, adding that the extra N35 billion was sourced from the sum meant for settling its joint venture cash call obligations.
He stated that the corporation regretted the governors’ additional request of N40 billion, adding: “It was unfortunate, given the fact that NNPC is set to exit the cash call phenomenon.â€
The June FAAC meeting was postponed on Thursday over alleged discrepancies in revenue expected to be remitted by the NNPC to the committee for sharing.
Meanwhile, the Department of Petroleum Resources (DPR) has said that the total volume of gas flared in Nigeria’s gas fields has reduced to nine per cent from 12 per cent it said it was before now.
The DPR’s Director, Mr. Mordecai Ladan, said this in a separate statement that was sent to THISDAY by Ughamadu. Ladan reportedly said this on the sidelines of the ongoing 27th World Gas Conference (WGC) taking place in Washington, United States.
He observed that now gas flare-out across the industry had reduced drastically from 12 per cent to 9 per cent, adding that as a regulator, the DPR would soon announce new ways of doing business in its areas of purview.
He also stressed that gas domestication was topmost on the agenda of the DPR, noting that: “We are trying to make sure that companies come up with projects that will utilise the gas, and in turn, reduce gas flaring in the process.â€
Similarly in the statement, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu and NNPC’s Group Managing Director, Dr. Maikanti Baru, said the country’s oil industry was creating an enabling environment to enable investors contribute to the development of Nigeria’s abundant natural gas resources.
While Kachikwu stated that Nigeria could take advantage of the ideas and lessons obtainable from other countries to dismantle all obstacles which he said have over the years slowed down her gas-to-power aspirations and industrialisation, Baru said the NNPC was driving up a number of initiatives to develop the industry.
“We are keen on using some of the new projects like the 614km Ajaokuta-Kaduna-Kano gas pipeline project to open up not only the gas corridor but also ensure that power plants that are built can inject stability into the national grid,†Baru explained.
He also said the NNPC would ensure that all the contracts it has entered into in this regards would be respected.
