FAAC Meeting Postponed Over State Govts, NNPCL Dispute

The February assembly of the Federation Accounts Allocation Committee (FAAC) scheduled for Wednesday has been postponed indefinitely following a dispute between state governments and the Nigerian Nationwide Petroleum Firm (NNPC) Ltd over excellent remittances.

State representatives boycotted the assembly, insisting that NNPCL should first settle an estimated N1.7 trillion in pending revenues, which have remained unpaid because the full elimination of the petrol subsidy in November 2024. It was unclear whether or not the assembly will likely be rescheduled later this week.

NNPC’s incapability to remit the anticipated quantity was attributed to a number of monetary commitments, together with crude swaps and forwards, which the oil firm has been leveraging to maintain its operations. An official defined that the obligations have considerably impacted the corporate’s money movement.

In response, the Federal Ministry of Finance swiftly issued a press release acknowledging the deadlock, whilst a number of state representatives had already left the assembly venue in frustration.

An announcement from the director of house finance and FAAC secretary, Ali Mohammed, confirmed {that a} new date for the assembly could be introduced.

“I’m directed to tell you that the conferences of the Federation Account Allocation Committee (FAAC) for the month of February 2025 have been postponed.

“In mild of this, I’m additional directed to tell you {that a} new date for the assembly will likely be communicated later, whereas the beforehand issued communique will likely be reviewed accordingly.

“The Ministry regrets any inconvenience the postponement might have triggered and extends the very best regards of the Honourable Minister of Finance and Coordinating Minister of the Economic system,” he said.