THE Nigerian National Petroleum Corporation, NNPC, and governors of the 36 States of the federation have reached an agreement that N112 billion should be given to the Federal Accounts Allocation Committee, FAAC,  every month.

This amount is, however, subject to NNPC having sufficient funds from sales of domestic crude oil allocation for the corresponding month after meeting cash call obligations on JVs, deductions of PMS cost under recovery and pipeline maintenance.

Realnews learnt that due to the posture of governors, the NNPC was able to raise N147 billion in the month of June for them by taking from the amount meant for settling cash call obligations.

“Sadly, however, the Governors wanted additional  N40 billion. Unarguably, this is very unfortunate considering that NNPC  is exiting the cash call phenomenon,” a source told Realnews.

Realnews reports that FAAC disbursed the sum of N289.04 billion to the federal government in May, according to the National Bureau of Statistics, NBS, has said.

The states received a total of N181.96 billion, while local governments received N137.33 billon.

It stated that the sum of N701.02 billion was disbursed to the three tiers of government during the month under review from the revenue generated in April.

According to the NBS, the amount disbursed comprised N612.64 billion from the Statutory Account, N87.97 billion from Valued Added Tax, VAT, and N418.88 million being excess bank charges recovered.