State and local government workers, may be in for a tough time as the monthly Federal Accounts Allocation Committee (FAAC) ended inconclusively, for the second time in 3 months.
Why the stalemate ?
Mahmoud Yunusa, chairman, the forum of FAAC commissioners, said the states rejected the amount presented by the NNPC because it was far lower than what was projected for the month.
He argued that if the NNPC could not surpass what they presented in February, then they should not present anything less than what they presented the previous months.
He further revealed that the revenue figures presented by the NNPC, came as a great surprise to the committee noting that the amount was less than ₦100 billion compared to the previous one.
In his words:
“We are contesting the figures because pipeline vandalism has reduced, while crude oil prices have continued to rise”
The FAAC meeting held in December last year was equally tense as states protested what they referred to as discrepancies in revenue reported by the NNPC. A committee headed by two governors was set up to investigate this.
The Implications of the shelved meeting
Most states in Nigeria rely solely on FAAC allocations to pay their workers’ salaries and also pay contractors carrying out various infrastructural projects in their states. The stalemate, could lead to civil servants not been paid, and contractors facing a cash crunch. This has larger implications for the economies of the affected states. Contractors would be forced to maintain skeletal operations or downsize their staff.
Minister of Finance, Kemi Adeosun has however called for an emergency meeting next week with the Group Managing Director of NNPC, Maikanti Baru, and key management over revenue payment into the Federation Account. This is aimed at reconciling revenue figures by the corporation.
