In a report by Bloomberg, Adeosun reportedly said the state oil company’s contributions to the Federation Account are less than expected and are unacceptable.
“Based on oil price, oil quantity you can pretty much calculate what you are expecting to see in the Federation Account and if the figure is less, then the right question that any stakeholder must ask is why?” Adeosun said.
Bloomberg also reports that a dispute over the remittances led to a deadlock at the monthly meeting of the Federation Account Allocation Committee.
It was also reported that after the monthly meeting of the committee headed by Adeosun, the finance minister said the government is in negotiations with the NNPC to resolve the issue.
Federation Account Allocation Committee
The Federation Account Allocation Committee is in charge of the allocation of funds to Nigeria’s federal, state and local governments. The account is used by the state to collect revenue from oil and other sources and then allocate to other tiers of government.
NNPC posts N147 billion contribution
In a statement on the NNPC’s website, the oil corporation’s spokesman, Ndu Ughamadu said N147 billion was the last monthly contribution by NNPC to the FAAC. The sum was equally justified and in line with an agreement the company has with Nigeria’s state governors. In the same vein, the last three years have seen NNPC posting losses according to statements available on its website. Meanwhile, Adeosun said Nigeria’s Excess Crude Account, in which the country’s oil savings are deposited, has a balance of $1.9 billion dollars.