FAAC postpones meeting over corporation's missing N37bn

The Federation Accounts Allocation Committee (FAAC) meeting which tends to the consideration and approval of statutory allocation was postponed on Tuesday, March 27, 2018, over a discrepancy of about N37.76 billion in revenue presented by the Nigerian National Petroleum Corporation (NNPC).

The meeting ended in a deadlock on Tuesday because the committee could not approve the allocation for the month of February to the three tiers of government owing to what was described as discrepancies in revenue figures presented to the committee by NNPC.

After the meeting at the headquarters of the Ministry of Finance on Tuesday, the Accountant-General of the Federation, Ahmed Idris, told reporters that the revenue would not be distributed until all outstanding issues were resolved.

He said, "Let me be quick to tell you that the meeting was inconclusive because issues around reconciliation of figures are on the table. Obviously, you are all aware that anything that has to do with the federation revenue is statutory and therefore constitutional. And we must always verify our figures to the last kobo, failing which we will be committing illegality and unconstitutionality.

"It is on that note that we observed some issues in the figures given by one of the major revenue-generating agencies, namely the NNPC. And the committee is of the opinion that until and unless these figures are reconciled, corrected, verified and are factual, we cannot distribute the revenue as the case is.

"We will look at the revenue figures as submitted by the NNPC and reconcile such figures, and upon the conclusion of the reconciliation of that figure, we will share the revenue accordingly.

"We have to explain this to Nigerians, bearing in mind that as civil servants, workers in the federal, state and local governments deserve to have their salaries and all other commitments of the government."

"It's not about the quantum of amount that is being distributed; it's about reconciliation. In finance and accounting, when you hear reconciliation, it means figures don't tally as presented by different sections and once figures do not agree, they must be made to agree.

"Unless we get to the bottom of it, have clarity and some level of certainty, we remain where we are."

The meeting, presided over by the Minister of Finance, Kemi Adeosun, will reconvene on Wednesday, March 28.

Other members of the committee are AGF Idris; commissioners for finance from the 36 states; representatives of revenue-generating agencies such as the Federal Inland Revenue Service, the Nigeria Customs Service and the NNPC, among others.

Adeosun meeting Baru for intervention

According to a statement signed by Adeosun's spokesperson, Oluyinka Akintunde, the minister will meet with the NNPC's Group Managing Director, Maikanti Baru, next week over the discrepancy.

"The minister has also called for an emergency meeting next week with the Group Managing Director of NNPC, Mr. Maikanti Baru, and key management over revenue payment into the Federation Account," he said.