Oluyinka Akintunde and Michael Faloseyi, Abuja

The money is part of the proceeds that accrued from the sale of crude oil at the international market, which ought to be paid by the corporation into the Federation Account.

While the Federation Account Allocation Committee has directed the NNPC to pay the money, the corporation is insisting that the FAAC also owes it N98billion.

FAAC is made up of the accountant-general of the federation, commissioners of finance in the 36 states, a representative of Revenue Mobilisation Allocation and Fiscal Commission among others, and is chaired by the minister of state for finance.

An impeccable source in the corporation, who confided this development to our correspondents in Abuja, disclosed that the NNPC had decided to withhold the money to defray the cost of the subsidy on domestic consumption of petroleum products borne by the corporation since crude oil prices skyrocketed.

The source said, “The inability of the corporation to pay the money is because of the precarious financial position the organisation has found itself, which was occasioned by the subsidy on the domestic consumption of petroleum products”.

He said that the increase in fuel prices did not completely address the situation and that NNPC would continue to defray costs from crude oil sales.

The NNPC, the source added, was incurring N22 per litre in providing subsidy on premium motor spirit or petrol consumed in the country prior to the increase in fuel prices last Friday.

The Group General Manager, Public Affairs, NNPC, Dr. Levi Ajuonuma, confirmed that there were issues to be sorted out concerning the money with FAAC, but would not comment further.

The Ondo State Commissioner for Finance, Chief Tayo Alasoadura, had last Friday told newsmen that the FAAC had established a Post-mortem Sub-committee to scrutinise the revenue paid into the Federation Account by revenue agencies such as the NNPC, Federal Inland Revenue Service and the Nigerian Customs Service.

The creation of the subcommittee was not unconnected with the rendering of inaccurate revenue figures to the Federation Account and the committee by some revenue collecting agencies.

The sub-committee is chaired by the representative of the RMAFC in the FAAC and co-chaired by the Chairman of Commissioners for Finance Forum of FAAC, who is the Ondo State Commissioner for Finance.

Giving details on the committee, a source in FAAC explained, “The sub-committee meets on a monthly basis to resolve all issues that are contentious. One of the issues is the debt liabilities between the NNPC and FAAC.

The PUNCH, Wednesday August 31, 2005