The controversy surrounding the deduction of money meant for fuel subsidy by the Nigerian National Petroleum Corporation from the Federation Account was laid to rest on Wednesday as the Federation Accounts Allocation Committee distributed N611.45bn among the three tiers of government.



Out of the amount, N553.14bn was paid from statutory revenue, while the balance of N58.30bn came from revenue earned from Value Added Tax.

Of the statutory revenue, the Federal Government received N260.71bn; the 36 states shared N132.24bn, while the 774 local government areas got N101.95bn.

The balance of N58.23bn was to be paid to the oil producing states based on the 13 derivation principle.

Similarly, the VAT revenue was shared with the Federal Government getting N8.74bn; states, N29.15bn and local governments N20.40bn.

The amount, according to the Minister of State for Finance, Dr. Yerima Ngama, would have been credited to the beneficiaries’ respective accounts on Wednesday night.

Ngama, who presided over the meeting in Abuja, told journalists that the stalling of the meeting on October 19 was responsible for the delay in the payment of the September salary of public workers.

He said the delay had made it imperative for the accounts of the three tiers of government to be credited on Wednesday night.

This move, he noted, would enable the workers to get their salaries latest by Friday (tomorrow)

He said, "This amount would be credited to all tiers of government tonight (Wednesday) to enable them continue with their responsibilities.

"Most of our states cannot pay salaries except the FAAC meeting is held and the funds are distributed, but we have some states which can actually pay their salaries whether FAAC holds or not, and there are some agencies of government that can pay and some cannot pay."

"So, if you say the delay of FAAC meeting has delayed the payment of salaries, then that is true. We have held the FAAC meeting and the funds will be distributed to the various ministries, departments and agencies tonight and we hope that latest by Friday, all employees of federal and state governments will get their salaries," the minister added.

To ensure that the states have liquidity, he disclosed that another FAAC meeting had been scheduled for November 15.

This, he noted, would enable the three tiers of government to consider as well as share statutory revenue for the month of October.

On the N450bn debt allegedly owed the Federation Account by the NNPC, the minister said that the corporation had begun repayment.

He, however, added that only the portion due to the states and local government would be paid in 32 instalments.

Of the instalments, he explained that the corporation had already paid N7.6bn each for the months of September and October.

Ngama said, "What the NNPC is repaying is the portion that will go to the states and local governments. You know the Federal Government has its own share, states and local government also have their own shares.

"So, when you take the shares of the federal and states government and you spread it over 32 months, so for the share of the states and local government, that amount to repayment of N7.6bn every month.

"I am assuring you that NNPC has paid its share for the months of September and October. So, we have two instalments already with us and this will be distributed to the states and local government tonight."

Asked to comment on the controversial subsidy deduction by the NNPC, the minister said, "The issue of the stay of action on subsidy and recovery of past or outstanding subsidy by NNPC was agreed between me and the management of the NNPC.

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