NNPC used N8.4trn FAAC contribution as payment for subsidy:

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said that the Nigeria National Petroleum Company (NNPC) Limited held on about N8.4 trillion which would have been part of revenue accruing to Nigeria in the guise that it was used to pay for subsidy.Chairman of RMAFC, Mohammed Shehu

He said NNPC LTD  stopped contributing to the national purse due to the subsidy regime.

“RMAFC has the constitutional mandate to monitor the accruals to and disbursement of revenue from the federation account and also advise federal and state governments on fiscal efficiency and methods by which their revenue can be increased.”

The chairman described the president’s pronouncement on the elimination of the petrol subsidy as a masterstroke that broke the jinx.

This, he said, was the appropriate step in the right direction.

“The country can no longer sustain fuel subsidies whose demerits far outweigh its benefits to the citizenry. It is saddening to note that since January 1, 2022, to date, the Nigeria National Petroleum Company (NNPC) Limited has not been contributing to the federation account due to the claimed subsidy payments,” he said.

“The total amount withheld by the NNPCL as claimed subsidies for this period amounted to N8,480,204,553,608.13 as reported by the office of the accountant general of the federation (OAGF) which is yet to be reconciled by the RMAFC, OAGF, and NNPCL.”

Shehu said in a situation where the records of petrol subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain “the phantom payments of subsidy at the detriment of other critical sectors of the economy”.