NNPC In Fresh Controversy Over N2.3 Trillion FAAC Money


The management of Nigerian National Petroleum Corporation (NNPC) on Sunday refuted a statement credited to Gov. Adams Oshiomhole of Edo that the Corporation owes the Federation Accounts N2.3 trillion, fuelling fresh controversy over the receipts by the corporation.

Acting Group General Manager, Public Affairs, NNPC, Ms. Tumini Green, said the governor’s allegations were unwarranted and unfounded.

The NNPC statement said: “We wish to state without any equivocation that we do not owe the Federation Accounts any money as at today, taking into account outstanding subsidies and other associated costs of operations and loses.

“We have consistently paid all monies due to Federation Accounts into its CBN account as we receive them,’’ it said.

The NNPC, which operates under a veil of secrecy, has battled unsuccessfully with similar allegations in the past and is considered a major drain of national revenue.

However, spokesman for the corporation explained on Sunday that not all revenues collected by NNPC were paid directly into the accounts of Federation Account with the CBN.

She explained in the statement that some of the monies were paid into the accounts of the relevant government agencies, like the Federal Inland Revenue Service and the Department of Petroleum Resources, also with the CBN.

“But eventually all these payments are credited to the accounts of the FAAC,’’ the statement said.

It said that another important issue, which was not taken into account by critics who reel out figures without crosschecking, was the outstanding debts owed NNPC by the Federal Government, especially from subsidy.

The statement read in part: “Nigerians may wish to recall that in the wake of January 2012 subsidy saga, there was no budgetary provision for subsidy to NNPC.

“And again in 2013 there was no budgetary provision for subsidy to the Corporation. NNPC has not received one kobo from the Federal Government in the name of fuel subsidy.

“Yet, Nigerians also know that NNPC has been the major supplier of petroleum products to the nation during this period and before.

“Indeed, for the whole period that the subsidy saga continued, NNPC was the sole supplier of PMS across the country, and we never failed to ensure that every nook and cranny of Nigeria was wet with PMS,” it said.

According to the statement, in addition to the outstanding payments, there are material losses that the Corporation incurs on almost daily basis from crude oil theft, products theft, pipeline vandalism and other acts of sabotage, which are beyond the control of the NNPC.

The statement further added: “It is therefore imperative for all state government, local government and authorities at all levels to join the NNPC to stem the incessant tide of crude oil theft, pipeline vandalism and other economic sabotage against the nation.

“That way, more funds will be available to FAAC,’’ it added.

The statement said the corporation was unwilling to join issues with anyone but would remain resolute in addressing the series of accusation for the purpose of establishing facts for the Nigeria public.