NNPC To Withdraw ₦242.53bn From Federation Account

NNPC To Withdraw ₦242.53bn From Federation Account

The Nigerian National Petroleum Corporation, often known as NNPC, has announced that it would take N242.53 billion from the Federation Account Allocation Committee account to be used as a subsidy for Premium Motor Spirit.

According to Naija News, the aforementioned figure, which was included in the firm’s recent presentation to the FAAC meeting in Abuja on Friday, would be withdrawn from the firm’s account this month.

Although the planned subsidy reduction was defined as a “value gap,” the National Nuclear Power Corporation (NNPC) said that the cash would be recovered from the February 2022 revenues that would be shared at the March 2022 FAAC meeting.

Due to the large amount of money spent on fuel subsidies and the resulting reduction from the Federation Account, the oil company did not make any payments to the FAAC in February 2022.

State governors slammed the Nigerian National Petroleum Corporation (NNPC) for not remitting any cash at the FAAC meeting held last month in early March of this year.

Kayode Fayemi, the Chairman of the Nigeria Governors’ Forum and the Governor of Ekiti State, had questioned how the oil company could be so brazen as to report a profit when it had been failing to satisfy its FAAC commitments for years.

Fayemi made the announcement among other governors during the Nigerian Governors’ Forum session on natural resources at the Nigerian International Energy Summit 2022 in Abuja, where the summit was held.

He particularly said that at the most recent Federation Accounts Allocation Committee meeting in February, the Nigerian National Petroleum Corporation (NNPC) made no payment to the federation.

“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.