There Will Be Zero Remittance To Federation Account In May, Says NNPC

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    …FG, States, Councils To Face Financial Crises

    The Nigerian National Petroleum Corporation (NNPC) said there will be zero allocation to the Federation Account for the month of May from the sector.

    NNPC, in a circular to the office of the Accountant General of the Federation, signed by Umar Ajlya Isa, Chief Financial Officer, said the landing cost for fuel for the month of March was N184 per litre against the ex-coaster price of N128 per litre.

    By the content of the circular, which was copied the Minister of Finance, Budget, and National Planning, Director General, Nigeria Governors Forum, Director, Home Finance and Chairman, Commissioners of Finance Forum, the Federal Governments, States and Local Governments are going to be in serious financial crises in meeting their obligations.

    The circular reads: “Further to our previous correspondences on the above subject, we wish to advise on the projected remittance to the Federation Account for the months of April (May, June. July, 2021 FAAC}.

    “The Accountant General of the Federation is kindly invited to note that the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was NI 84 per litre as against the subsisting ex-coastal price of NI 28 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.

    “As the discussions between Government and the Labour are yet to be concluded, NNPC recorded a value short fall of Nill in February 2021 as a result of the difference highlighted above.  “Accordingly, projection of remittance to the Federation for the next three months is presented in the attached schedule.

    “Accordingly, the AGF is invited to note that the sum of Nill will be deducted from April 2021 Oil and Gas Proceeds due to the federation in May 2021, which will translate to zero remittance to the Federation Account from NNPC in the month of May 2021.

    “This is to ensure the continuous supply of Petroleum Products to the nation and guarantee energy security.”

     

     

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