NNPC: to pay N450 billion debt owed to FAAC

NNPC: to pay N450 billion debt owed to FAAC

The Nigerian National Petroleum Corporation (NNPC) has agreed to pay the N450 billion debt owed the Federation Accounts Allocation Committee (FAAC) in 32 instalments, with effect from this month.

The Minister of State for Finance, Dr Yerima Lawan Ngama, stated this while briefing the media, after the rescheduled meeting of FAAC in Abuja.

Ngama revealed that FAAC and NNPC had resolved that the apex petroleum regulatory institution would remit the money in 32 instalments, effective the first week in September this year.

Statutory budget

 According to him: “The N450 billion issue had been resolved long ago, it was one of the matters I took upon myself to resolve when I assumed office”. So about 10 days after the last FAAC meeting, it was resolved. And the schedule for NNPC payment for the money is 32 instalments effective from September. That has never been an issue with me.”

Speaking on the amount distributed for the three tiers of government in the month of August, Ngama said that a total of N607.23 billion was shared; out of N615.757 billion budgeted.

The statutory budget was N554.150 billion, while N552.296 was realised. The projected revenue from value added tax, VAT was N61.607, however, N54.727 was realised.

Sovereign Wealth Fund

The Federal Government received N319.779 billion, representing 52.68 per cent; states got N168.266 billion (27.72 per cent), while the local government councils received N119.178 billion.

He also explained the reason behind the decision of the federal government to establish a Sovereign Wealth Fund, SWF, saying that it was the best practice on how to run the economy.

While supporting the wisdom in the establishment of SWF, Ngama cited countries such as Kuwait and the United Arab Emirate, UAE, which he said, has as much as $500 billion and $700 respectively in such funds.

Iheanacho