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The
federal government at the weekend received the interim report on the
audit it ordered last year on the accounts of the Nigerian National
Petroleum Corporation. Chairman, Finance Commissioners’ Forum, Rebo
Usman, who disclosed this in Abuja on Friday at the end of the January
meeting of the Federation Accounts Allocation Committee (FAAC), said
the report was submitted to the Federal Ministry of Finance late on
Thursday.

The
report came just as the committee, consisting of commissioners of
finance and accountant generals of the 36 states of the federation and
the Federal Capital Territory resolved to share the sum of
N410.78billion (including VAT) from the federation account to the three
tiers of government.

Details
allocation shows distributable statutory revenue for the month of
N349.166billion, a decrease of N15.474billion, or 4.24 percent,
compared to the allocation for November, 2010, while the gross revenue
available from the Value Added Tax (VAT) was N47.461billion. Besides,
there is a proposal for the payment of augmentation of N16.051billion
as a result of shortfall in distributable revenue, though there was no
exchange gain because of the prevailing exchange rate of N147 per
dollar, which is lower than the N150 per dollar set as exchange
benchmark in the budget.

The
gross revenue of N581.561billion for the month is higher than
N557.839billion from the previous month by N23.722billion, attributable
to higher crude oil prices in the international markets above the $60
per barrel used in year 2010 budget. The allocation is coming barely
one week after the committee held a secret emergency meeting in the wee
hours of last December to approve the release of $1billion (about
N150billion) from the excess crude account for distribution among the
same tiers of government.

Most
observers had said the withdrawal was meant as an a new year bonus to
state governors for their acceptance to trade their support for
President Goodluck Jonathan, who emerged the ruling People’s Democratic
Party flagbearer in the forthcoming April presidential elections.

Mr
Usman, who is also the Taraba State commissioner for finance, said the
audit report would, however, not be made public until the ministry has
studied and digested the various recommendations contained in it to
guide government’s next line of action.

He
disclosed that the committee however resolved during the meeting not to
wait any longer for the formal release of the report before reiterating
its demand for the management of NNPC to move quickly to settle the
N450billion outstanding debt to the Federation Accounts.

“During
the meeting, we discussed extensively about the N450billion debt to the
Federation Accounts by the NNPC. We have taken a position that the FAAC
does not have anything to do with the interim audit report, since
agreement has since been reached that the NNPC is owing the N450billion.

“It
was also resolved that what should come to the Committee at its next
meeting should be the payment schedule by the NNPC. If the NNPC has an
issue with the federal government on reconciliation of its accounts,
they should find a way to sort themselves out, as the states and local
governments are not going to listen to any stories anymore,” Mr Uman
said.

The
issue of the corporation’s indebtedness to the Federation Account has
remained contentious since last year when the then Minister of state
for finance, Remi Babalola, alleged that the NNPC was not only broke,
but incapable to meet its current liabilities. Its group managing
director, Austen Oniwon, had said in a letter he sent to the committee
explaining why the corporation would not be able to pay the debt,
saying: “the corporation is insolvent, as its current liabilities
exceeded its current assets by N754billion as at December 31, 2008,”
adding that it would be able to pay the money only when the federal
government agreed to reimburse it the N1.156trillion spent on subsidy
expenses incurred for petroleum products supplies and distribution
since 2003.

Though controversy later culminated in the sack of Mr Babalola, the
government decided to order the comprehensive forensic audit of the
accounts of the corporation.