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The NNPCL had resumed remittances to FAAC in June after
failing to do so due to huge fuel subsidies expenses.
According to a communiqué issued at the end of the FAAC
meeting for July 2023, seen by The PUNCH, NNPCL said the balance in the excess
crude account was $473,754 as of June 2023, the same amount in the purse as of
December 15, 2022, while it paid N907.054bn into the FAAC purse.
The meeting was chaired by the Accountant General of the
Federation, Dr. Oluwatoyin Madein.
From the total distributable revenue of N907bn; the Federal
Government received N345bn, the State Governments received about N296bn and the
Local Government Councils received N218bn. A total sum of N47bn was shared to
the relevant states as 13 per cent derivation revenue.
Energy expert, Bala Zaka, described the trend as “very
dangerous and negative.”
The ECA is an account created to save the extra funds made
anytime the country sold crude oil higher than the approved benchmark in the
budget.
For example, if the crude oil benchmark was $70 per barrel
and the commodity sold for $75 per barrel, the excess $5 was saved for rainy
days.
While Nigeria had benchmarked crude oil price for 2023 at
$75 per barrel, international Brent had risen to $82 per barrel last week
before dropping to $80 per barrel as at Friday. It is worthy of note that
Nigeria’s crude grade, Bonny Light usually preferred by international
refinners, sells +$1 above dated Brent.
The account had declined by 89 per cent in the last eight
years, moving from $4.1b in November 2014 to $472,513 in the same period of
2022.
Professor of Economics at the Olabisi Onabanjo University,
Ogun state, Sheriffdeen Tella, said the unfortunate situation occurred due to
government’s discipline.
“You will recall that the Governors’ Forum kicked against
the account claiming it is their money and the Federal Government has no right
to deny them of its use.
“So, if money is transferred into such account now, the same
argument will arise. It’s a practice worldwide but Nigerian governments are not
disciplined. Many are always looking for money to steal; to live big, to amass
personal wealth and remain greedy.”
In a separate statement released by the NNPCL Chief Financial Officer, Umar Ajiya,
the firm said it also remitted N123bn(N81bn as monthly interim dividend and
N42bn as 40 per cent Production Sharing Contract on profit oil) in addition to
compliance on payment of royalties and taxes.
Ajiya did not disclose how much it paid in taxes and
royalties.
“This clearly shows that the company under the leadership of
Mallam Mele Kyari is moving in a positive trajectory as enshrined in the PIA,”
the statement said.