State governments are set to sink deeper into financial crises as the Nigerian National Petroleum Company (NNPC) Limited has again informed them a deduction of N328 billion will be made on its monthly contribution to the federal account for April 2022, IgbereTV reports
The development means a lower amount to be shared by FG, states and LGs at the monthly FAAC meeting next month.
NNPC in the first two months failed to contribute a kobo to the federation account despite oil trading at high prices.
Ripples Nigeria in an earlier report captured how governors are piling up debts to run their states.
The management of NNPC’s argument is that most of its revenue was used to pay for Premium Motor Spirit, popularly called petrol.
In its FAAC report for March published on its website, NNPC revealed that in January and February so far N430.165bn has gone into subsidy payment.
The NNPC stated that in January this year the sum of N210.38bn was used to subsidise petrol, while N219.78bn was spent as subsidy in February
