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NNPC may lose power to collect royalty from oil companies

Mahmoud Yunusa, chairman, forum of finance commissioners, says the federation allocation accounts committee is working on stripping the Nigerian National Petroleum Corporation of its powers of collecting royalty from oil companies.

While addressing journalists during the weekend, Yunusa said it would be seen as a solution to the remittance problem the committee has with the NNPC.

At present, NNPC is responsible for collecting royalty from oil companies and remitting to the federation account.

“Part of the process of strengthening the system will be to take the collection and remittance of royalty from NNPC to the Department of Petroleum Resources (DPR) while the collection and remittance of PPT will also be returned to the FIRS in line with the law,” he said.

“This is part of the process that we are trying to strengthen and we are trying to adopt. It is there, part of the law under oil and gas, like in any other IOC, that all royalties should be collected and remitted to the federation account by the DPR; it is DPR’s responsibility.

“Before DPR collects that royalty, it has to make sure that the actual amount that is supposed to be remitted is remitted. If it is under remitted, the DPR will be responsible for the shortfall and I know DPR would not want to be responsible for a shortage that they are not even aware of.”

FAAC has suspended its meetings indefinitely till the issue of alleged under remittance by the NNPC is resolved.

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