States In Uproar Over ₦200 Billion FAAC Shortfall – Governors Demand Immediate Action

According to the forum, since October 2024, NNPCL has made only one incomplete remittance, amounting to less than ₦200 billion, leading to a standoff between state governments and the corporation. This dispute was cited as the reason for the postponement of last week’s FAAC meeting.

Ongoing discussions between both parties aim to resolve the issue, with Chairman of the Forum, Akin Oyebode, confirming to The Nation that, “Subsidy ended in October 2024. Since then, NNPCL has made just one incomplete payment of under ₦200 billion to the federation.”

Oyebode stressed the need for increased funding to enable states and local governments to meet their obligations. He outlined that NNPCL is responsible for three key financial contributions: royalties to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), taxes to the Federal Inland Revenue Service (FIRS), and dividends to the federation as a shareholder.

The forum noted that due to NNPCL’s inconsistent payments, a reconciliation process is underway to determine whether the federation owes NNPCL or vice versa regarding subsidy arrears. Oyebode insisted that until a conclusive reconciliation and payment plan are established, NNPCL must continue its remittances to the federation account.

On the delayed FAAC meeting, Oyebode confirmed that discussions are ongoing to create a structured framework for engagement with NNPCL.

“If NNPCL presents a reasonable position, the meeting will be convened soon. Commissioners are ready to return to Abuja,” he stated.

He dismissed any notion of conflict, emphasizing that both sides are committed to finding a fair resolution. Oyebode also pointed out that President Bola Tinubu’s subsidy removal policy has significantly influenced these financial negotiations, which were not feasible under the previous subsidy regime.