N450b Debt: FG Gives Deadline To NNPC

Following the outcome of the interim audit report on the Nigeria National Petroleum Corporation, NNPC, which was recently received by the Federal Government, the National Oil Company  had been directed to settle the N450 billion outstanding debts to the federation account, without further delay.

Chairman Finance Commissioners Forum of Nigeria, Rebo Usman, disclosed this in Abuja at the end of January meeting of the Federation Accounts Allocation Committee (FAAC) last week.

Usman said the report which was received by the Federal Ministry of Finance, came just as the committee, consisting of Commissioners of Finance and Accountants General of the 36 states and the Federal Capital Territory resolved to share the sum of N410.78 billion (including VAT) from the federation account.

Usman who is also the commissioner of finance Taraba State, said the earlier position of FAAC on the NNPC indebtedness remain valid, as the company is expected to pay its debt in no distance time.

He advised the NNPC to sort out its differences with the Federal Government on reconciliation of its accounts and “ensure they come up with payment schedule by the next FAAC meeting”.

The issue of the Corporation ‘s indebtedness had been in the front burner since last year when the Minister of State for Finance, Remi Babalola alleged, but incapable to meet its current liabilities.

NNPC, Group Managing Director,  Austen Oriwon, had said in a letter addressed to FAAC, explaining why the corporation would not be able to pay the debt, claiming that, “the corporation is insolvent, as its current liabilities exceed its current assets, by N754 billion as at December 31, 2008.

The NNPC boss, further explained in the letter that, the corporation could only pay the  money when the federal government agree to reimburse it the N1.156 trillion spent on subsidy expenses incurred for petroleum product supplies and distribution since 2003.  the height of these claims and counter claims was the ordering the federal government of a comprehensive audit of the NNPC account last year.

Taneh Bemene