FAAC meeting postponed as states, NNPC dispute over N1.7trn remittances

Seven implications of higher FAAC allocations for state governments

Federation Accounts Allocation Committee (FAAC)

The Federation Accounts Allocation Committee (FAAC) meeting scheduled for Wednesday was postponed due to a dispute between states and the Nigerian National Petroleum Company (NNPC) Ltd over unpaid remittances.

States boycotted the meeting until NNPC settles an estimated N1.7 trillion in revenues, which have been pending since the full removal of the petrol subsidy in November 2024. It remains uncertain whether the meeting will take place later this week.

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This comes a few months after President Bola Tinubu said in a presidential TV chat that the federal government has not been depending on the NNPC to meet its financial obligations.

According to TheCable a senior official of The NNPC said the company is tied down to a number of obligations, such as crude swaps and forwards which it has been using to finance operations. And according to the official, it is affecting its cash flow.

Faith Donatus

Dr. Faith Donatus is a climate change expert, a seasoned researcher with over 15 years of experience and a two-time award winner for contributing to research by the International Journal of Research and Scientific Innovation. With a PhD in Environmental Pollution and Control, Faith is passionate about transforming Nigeria's food and public health systems through deep research, data-driven analysis, deducing solution-based insights to challenges impacting Nigeria's food and health systems. At Businessday, she is a real sector correspondent, covering health and agricultural beats.