The planned deduction of N242.53bn fuel subsidy from the Federation Account this month by the Nigerian National Petroleum Company Limited is raising uncertainty among states as the Federation Accounts Allocation Committee is scheduled to meet on Tuesday (today).
It was gathered that commissioners for finance from the 36 states would meet today for the usual monthly allocation sharing meeting by the three tiers of government.
Already, the NNPC had made it known to the states that it would deduct a total of N242.53bn in March (this month) as the amount spent on the subsidy of Premium Motor Spirit, popularly called petrol.
Subsidy deductions by the NNPC had often reduced the amount being shared by FAAC, piling pressure on the finances of state governments as they battle to meet their obligations especially payment of salaries.
When contacted to tell the efforts which states were making to meet their obligations and pay salaries, the Chairman of the Forum of Finance Commissioners, David Olofu, declined comment, but stated that this month’s FAAC meeting would hold on Tuesday.
“You are trying to squeeze water from the rock,” he told one of our correspondents.
When probed further on the date of this month’s FAAC meeting, Olofu, who is also Benue State Commissioner for Finance, replied, “Tomorrow (being today, Tuesday).”
The Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, had also wondered how the oil firm was bold enough to declare profit when it had not been meeting its FAAC obligations.
Fayemi had disclosed this alongside other governors during the Nigerian Governors’ Forum session on natural resources at the Nigeria International Energy Summit 2022 in Abuja.
He specifically pointed out that in the last Federation Accounts Allocation Committee meeting in February, the NNPC made zero remittance to the federation.
“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.
Several states were reported to have found it difficult to pay salaries in February following the zero remittance from the NNPC in that month.
Going by media reports, the Kano State Government which had approved the minimum wage of N30,000, was reported to have reverted to the old minimum wage of N18,000 for its workers.
The State Commissioner for Information, Muhammadu Garba, reportedly said, “Given the present financial situation, the government would find it difficult to implement the consolidated salary for the month of March, which is though a temporary measure.”
