In a startling revelation, Mr. Mohammed Bello Shehu, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), expressed deep concern over the Nigeria National Petroleum Company Limited (NNPCL) failing to contribute to the Federation Account due to claimed subsidy payments.
Mr. Shehu who disclosed this in a statement recalled that the Commission had consistently expressed its position on the vexatious issue of subsidy removal since the time of late Hamman Tukur who chaired the Commission during the administration of former President Olusegun Obasanjo.
As per reports from the Office of the Accountant General of the Federation (OAGF), the NNPCL has withheld a staggering amount of N8,480,204,553,608.13 as subsidies since January 1st, 2022.
Chairman Shehu conveyed his disappointment, stating, “It is saddening to note that since January 1st, 2022, to date, no contribution has been made by the NNPCL.”
He added that in a situation whereby the records of subsidy transactions are not transparent and crude oil prices are being determined globally, it would be unwise to sustain the phantom payments of subsidy at the detriment of other critical sectors of the economy thus making its sustainability difficult for the Government.
The failure to contribute to the Federation Account has raised serious concerns about the financial stability and proper allocation of funds in Nigeria.
The claimed subsidies, which have not yet been reconciled by the RMAFC, OAGF, and NNPCL, have created a significant setback in the country’s economic growth and development.
However, Chairman Shehu reiterated the RMAFC’s support for President Bola Ahmed Tinubu’s recent announcement regarding the removal of subsidies. He described the decision as long overdue and a crucial step in overcoming a major challenge to Nigeria’s economic progress.
The withheld subsidies have further strained the finances of the country, posing a threat to critical sectors and services that rely on the funds from the Federation Account.
It is imperative for the RMAFC, OAGF, and NNPCL to swiftly reconcile the outstanding amounts, ensuring transparency, accountability, and the proper utilization of funds for the betterment of the nation.
The NNPCL, as a vital player in Nigeria’s petroleum industry, must address the concerns surrounding the claimed subsidies and actively participate in contributing to the Federation Account.
The resolution of this issue is crucial to stabilize the economy and ensure the availability of funds for essential services, infrastructure development, and the overall welfare of the Nigerian people.
As the RMAFC continues to work towards resolving the subsidy payment discrepancy, the nation eagerly awaits the reconciliation process and hopes for a positive outcome that will restore financial stability and propel Nigeria towards sustained growth and development.
