Fuel Subsidy Controversy Settled between FG and States

The fuel subsidy controversy by the Nigerian National Petroleum Corporation and the other stake holders of the petroleum industry in Nigeria has been brought to an end yesterday.

The Federation Accounts Allocation Committee distributed N611.45bn among the three tiers of government. N553.14bn was paid from statutory revenue, while the balance of N58.30bn came from revenue earned from Value Added Tax.

N58.23bn was to be paid to the oil producing states based on the 13 derivation principle.The VAT revenue was shared with the Federal Government amount of N8.74bn; states, N29.15bn and local governments N20.40bn.

According to the Minister of state for Finance,  Dr. Yerima Ngama , The amount would have been credited to the beneficiaries’ respective accounts on Wednesday night. Ngama, who presided over the meeting in Abuja, stated that the stalling of the meeting on October 19 was responsible for the delay in the payment of the September salary of public workers. However, to this, workers get their salaries latest by Friday (tomorrow)

On the N450bn debt allegedly owed the Federation Account by the NNPC, the minister said that the corporation had begun repayment. , the minister said, “The issue of the action on subsidy and recovery of past or outstanding subsidy by NNPC was agreed between me and the management of the NNPC.

He, however, added that only the portion due to the states and local government would be paid in 32 installments. He stated that the corporation had paid N7.6bn each for the months of September and October when spread over 32 months, He added that what the NNPC is repaying is the portion that will go to the states and local governments. because the Federal Government has its own share, states and local government also have their own shares.