Why You May Receive Your June Salary Between July & August
Government workers in Nigeria may have to wait a little longer to earn their pay for the month of June.
This is because a quarrel has broken out between the Federation Account Allocation Committee, FAAC and the NNPC over the available funds to be shared by the three tiers of government.
So, it all started on Thursday, when Nigeria’s state governors gathered to share the national cake in Abuja.
As it turned out, the cake couldn’t be shared because it wasn’t enough to go around.
The Federation Account Allocation Committee, FAAC, backed by the National Economic Council, NEC rejected the amount of money (cake) made available for sharing.
So, what exactly is the bone of contention? We’ll try to explain.
The FAAC suspects fraud with the NNPC remittance. The Nigeria National Petroleum Corporation, NNPC’s remittance to the federation account is based on the quantity of crude oil sold at international oil market.
At the moment, crude production stands at about 1.2 million barrels per day.
Nigeria’s bonny light, which is in high demand by cruder buyers sells for more than 70 dollars.
So, it appears easy to immediately figure out how much crude NNPC sells and total revenue realized.
But then it appeared that if this was to be calculated, taking into account expected cost of production and other factors such as the crude swap arrangements, it still wouldn’t add up to the amount NNPC was supposed to remit to FAAC.
It was based on this that the FAAC rejected NNPC’s remittance for the month of June.
The Minister of Finance, Kemi Adeosun did not give specific details on how much exactly NNPC remitted and the amount that the FAAC had expected.
But NNPC is arguing that there are unforeseen expenditures that the corporation incurred that led to the reduction of amount remitted.
The FAAC is however, not buying that argument, with Adeosun being quoted as saying that ‘the corporation’s costs were not justifiable” and therefore couldn’t be approved.
The wait continues as all the parties concerned continue to engage on Friday.
But as this lingers, the people to pay the price for the delay would be civil servants, whose salaries for the month of June.
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