NNPC: We're not owing FAAC N2.3tn

The Nigerian National Petroleum Corporation (NNPC) has said it is not indebted to the Federation Accounts Allocation Committee (FAAC), contrary to media reports.

It described as unwarranted and unfounded the a statement credited to the Edo State Governor, Mr. Adams Aliyu Oshiomhole, that the corporation owes FAAC N2.3 trillion.

It absolved itself of blame in the seeming fiscal crisis facing the nation, which has made state commissioners of finance to walk out on FAAC meetings twice in the last two months, following paucity of funds to share among the three tiers of government.

The corporation on Sunday the accusation was part of a sustained campaign against it and its leadership in recent times.

A statement by the acting Group General Manager, Group Public Affairs Division, NNPC, Ms. Tumini Green, said Oshiomhole's allegation was aimed at distracting the corporation from the pursuit of the transformation of the oil and gas industry.

She said, 'We wish to state without any equivocation that we do not owe the Federation Accounts any money as of today, taking into account the outstanding subsidies and other associated costs of operations and losses.

'We have consistently paid all money due to the FAAC as we receive them.'

Green said not all revenues collected by the NNPC were paid directly into the Federation Accounts with the Central Bank of Nigeria.

According to her, some are being paid into the accounts of the relevant government agencies, like the Federal Inland Revenue Service and the Department of Petroleum Resources.

'But eventually, all these payments were credited to the accounts of the FAAC,' the statement added.

Green stated that another important issue, which was not taken into account by critics, was the outstanding debts owed the NNPC by the Federal Government, especially from oil subsidy.

She said, 'Nigerians may wish to recall that in the wake of the January 2012 subsidy saga, there was no budgetary provision for subsidy to the NNPC, and again, in 2013 there was no budgetary provision for subsidy to the corporation.