Business

Govs decry NNPC zero contribution to federation account

The Nigeria Governors Forum (NGF) has decried the zero contribution of the Nigerian National Petroleum Company (NNPC) Ltd. to the Federation Account in recent months.

Chairman of NGF and Ekiti State Governor, Dr. Kayode Fayemi, made this known at the Governors’ Forum on Natural Energy, Oil and Gas at the fifth Nigeria International Energy Summit (NIES) on Thursday in Abuja.

Fayemi said: “The NNPC contributed zero to the federation account last month. This is not the first time.

“Of course, we know why; though the price of crude oil is going to about $110 per barrel at the international market.

“The more it goes up, it seems like the more we suffer.”

He noted that it was ironic that the NNPC was declaring profit and unable to meet its obligations to the Federation Account Allocation Committee (FAAC).

Fayemi said the governors were concerned about how to grow the industry, stressing that transparency, accountability and governance were critical in achieving this objective.

He noted that the Petroleum Industry Act was responding to some of the challenges facing the sector though the governors had raised concerns regarding some of the provisions of the Act.

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The NGF chairman also faulted the oil and gas sector being on the Exclusive Legislative List of the Federal Government.

Fayemi explained that when he was the Minister of Mines and Steel Development, he reviewed the Act regulating the sector to allow more states and local governments participation.

He added that Nigeria should begin to harness its abundant gas resources as the world push for transition to cleaner sources of energy.

The Star

Editor

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