After two weeks of disagreement between the Federation Account Allocation Committee and the Nigerian National Petroleum Corporation on revenue discrepancies, both parties on Thursday finally resolved their differences.
This was one of the highpoints of this month’s FAAC meeting, which was held at the headquarters of the Federal Ministry of Finance in Abuja.
The meeting resolved, among other things, to allow the states to be fully involved in tracking and collating the figures the NNPC would be presenting to the committee.
Addressing journalists at the end of the meeting, the Chairman of Commissioners Forum, Mr. Mahmoud Yunusa, said based on the last disagreement with the NNPC, the states would appoint a consultant to track the revenue generated by the corporation.
He said due to the revenue disagreement with the NNPC, the Federation Account recorded more inflow than it would have ordinarily witnessed.
Yunusa stated, “We discovered discrepancies in the October 2017 figures of the FAAC papers submitted by the NNPC and demanded for the genuine figures. Going forward, we will engage a consultant to work with the NNPC to collate figures and report back to the states on the true figures.
“There were some slight errors and the gaps were bridged, but going forward, states will be fully involved to ensure that it does not repeat itself again. The NNPC was invited to the last National Economic Council to meet with the state governors, and going forward, the NNPC will be more careful.”
At the end of the meeting, the committee allocated the sum of N532.75bn to the three tiers of government.
The amount is for statutory allocation for the month of October.
A breakdown of the allocation showed that the Federal Government received the sum of N218.6bn; the states got N147.39bn; while the 774 local government councils were allocated the sum of N110.58bn.
Similarly, the committee allocated the sum of N40.84bn to the oil-producing states based on the 13 per cent derivation principle, while the revenue-generating agencies were allocated N15.3bn as the cost of revenue collection.
A communique issued at the end of the meeting stated that the country generated a gross revenue of N443.04bn in October.
This, it stated, represented an increase of N19.08bn over the N423.96bn received in September.
The communique added that there was a decrease in revenue from export sales of $42.94m due to a decrease in crude oil production by 1.25 million barrels. However, the communique stated that the average crude oil price increased from $46.29 to $48.66 per barrel.