NNPC Stays Action on Recovery of Subsidies From Federation Account

The Nigeria National Petroleum Corporation, NNPC moved to avert crisis over the sharing of national revenue between the three tiers of government on Wednesday when it agreed to stay action on further recovery of backlog of subsidies form the federation account.

Commissioners of finance from the 36 states of Nigeria had on Tuesday left the meeting of the Federation Accounts Allocation Committee in protest of moves by NNPC and the Petroleum Products Regulatory Agency, PPRA to deduct a total of N250 billion as subsidy recovery from the funds available for the three tiers of government to share for the month.

The Commissioners had argued that proposed deduction was outrageous.

But in a press release signed by Dr. Yerima Lawan Ngama Minister of State for Finance/Chairman of FAAC released to the press this evening,NNPC agree to stop the intended deduction.

“After due consultations between the Honourable Minister of State for Finance and Chairman of the Federation Accounts Allocation Committee, FAAC, Dr. Yerima Lawan Ngama,  the Management of the Nigerian National Petroleum Corporation, NNPC, on Wednesday  agreed to stay action on further recovery on backlog of subsidies due it from  the Federation Account”, the minister said in the press release.

“Dr. Ngama was positive that this decision would help resolve the issues that stalled the last FAAC meeting in Abuja”, he concluded.