The Business NG - February 21, 2025

In this issue

FAAC Meeting Postponed as States Boycott Over N1.7 Trillion NNPC Remittance Dispute

The Federation Account Allocation Committee (FAAC) meeting scheduled for Wednesday was postponed after state governments boycotted the session over a dispute with the Nigerian National Petroleum Company (NNPC) Ltd regarding outstanding remittances.

At the heart of the standoff is an estimated N1.7 trillion in unpaid revenues, which states claim have been pending since the removal of petrol subsidies in November 2024. The impasse has raised concerns about revenue-sharing delays, potentially affecting state budgets and financial planning.

It remains unclear if the meeting will be rescheduled this week as negotiations continue. The dispute highlights rising tensions over Nigeria’s oil revenue management.

President Bola Tinubu had earlier stated in a televised interview that the federal government no longer relies on NNPC for financial obligations. However, sources within the oil company indicate that its cash flow is constrained by financial commitments, including crude swaps and forward contracts used to fund operations.

The deadlock underscores broader fiscal challenges in managing Nigeria’s oil revenues.