The Nigerian National Petroleum Corporation, NNPC, on Friday reversed its decision to make zero contribution to the Federation Account Allocation Committee, in the month of May, due to high cost of petrol subsidy.

The Corporation in a statement by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru explained that the shortfall in remittance will be remedied.

NNPC had in a letter to the Accountant General of the Federation warned that it would not make any remittance to the Federation Account Allocation Committee in the month of May after spending N111.966 billion to subsidize petrol consumption in March.

NNPC’s Chief Financial Officer, Umar Isa in the letter explained that the amount spent on subsidy in March would be net-off from oil and gas revenue in April due in May leaving no balance for FAAC.

Isa also projected that NNPC would only be able to remit just N12.966 to FAAC in June also due to subsidy payment.

However, Obateru clarified in the statement that “the revenue projection contained in the letter to the Accountant General of the Federation being cited in the media pertains only to the Federation revenue stream being managed by the Corporation and not a reflection of the overall financial performance of the Corporation”.

NNPC maintained that “it is conscious of its role and was doing everything possible to shore up revenues and support the Federation at all times.

“The shortfall will be remedied by the Corporation as it relates only to the Federation revenue stream being managed by the NNPC and does not reflect the overall financial performance of the Corporation. The NNPC remains in positive financial trajectory for the period in question,” Obateru stated.

He said NNPC would continue to pursue and observe “its cost optimization process with a view to maximizing remittances to the Federation Account”.

Dr. Obateru noted that the letter which “has fueled reports of impending revenue shortfalls with dire consequences for the various tiers of government”, was “inappropriately shared by unscrupulous persons”.

NNPC assured that it would continue to meet its financial obligations to the Federation.

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