We Are Not Broke, NNPC Speaks on FAAC Revenue Remittance

We Are Not Broke, NNPC Speaks on FAAC Revenue Remittance

- The NNPC has issued clarification regarding its letter to the AGF saying it may not remit revenue to FAAC in April and May due to fuel subsidy payment

- Contrary to media reports, the corporation said the development does not indicate it's in financial straits

- The NNPC explained that the letter was only referring to the federation revenue and has nothing to do with its overall financial performance

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The Nigerian National Petroleum Corporation (NNPC) has explained that the zero revenue remittance projection in its letter to the Accountant General of the Federation (AGF) pertains only to the federation revenue stream it manages for the country.

Kennie Obateru, the group general manager of the NNPC public affairs division explained in a statement released on Friday, April 30, that the letter was not a reflection of the overall financial performance of the corporation.

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FAAC: We Are Not Broke, NNPC Speaks on Revenue Remittance
The NNPC has clarified its zero remittance letter to the Accountant General of the Federation (AGF). Photo credit: @NNPCgroup
Source: Twitter

He noted that the clarification became necessary in the light of media reports insinuating that the corporation was in financial straits.

The NNPC spokesman said the NNPC is conscious of its role and was doing everything possible to shore up revenues and support the federation at all times.

The statement read partly:

“The shortfall will be remedied by the corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the Corporation.
“The NNPC remains in positive financial trajectory for the period in question.”

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Earlier, Legit.ng reported that the NNPC had in a letter to the AGF revealed that it would only be able to contribute a small amount of money to the federation revenue in June.

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The NNPC blamed the payment of fuel subsidy for the development, saying it would only be able to remit N12.966 billion to the Federation Accounts Allocation Committee.

Alerting the federal and state governments, the NNPC said it would not make any remittance for the April and May FAAC after paying fuel subsidy from its revenue.

Meanwhile, in his reaction to the NNPC's zero revenue projection, the governor of Bauchi state, Bala Mohammed, said the development is capable of plunging the nation into serious chaos.

He blamed the development on the government's alleged inability to manage Nigeria's economy and its many untapped resources.

Source: Legit

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