Home Exclusive NNPC again fails to remit revenue to federation account as it deducts N271bn for fuel subsidy

NNPC again fails to remit revenue to federation account as it deducts N271bn for fuel subsidy

by Our Reporter

The Nigerian National Petroleum Company (NNPC) Limited said it has deducted another N271.13 billion from its revenue to offset subsidy on petroleum products importation into the country in April 2022.

Subsidy or under-recovery is the difference between the landing cost of petrol imports and the pump price of premium motor spirit (PMS), otherwise known as petrol.

The state-run oil firm, NNPC has spent N947.53 billion on petrol subsidy this year — more than half of the 2021 subsidy estimate.

In its monthly presentation to the Federation Account Allocation Committee (FAAC) meeting on Tuesday, the NNPC said it would deduct N371 billion for the shortfall in May 2022 during next month’s FAAC meeting.

“The Value Shortfall on the importation of PMS recovered from April 2022 proceeds is N271,125,127, 487,58 while the outstanding balance carried forward is N371 billion,” the document reads.

“The estimated Value Shortfall of N 874 503 649 663 98 bn (consisting of arrears of N 371 billion, plus estimated April 2022 Value Short Fall of N 503 313 767 828 14 is to be recovered from May 2022 proceed due for sharing at June 2022 FAAC Meeting,” the oil firm stated in the document present to FAAC.

In January, February and March 2022, petrol subsidy gulped 210.38 billion, N219.78 billion, and N245.77 billion, respectively.

Nigeria budgeted a total of N4 trillion to fund the cost of petrol subsidies — as a result of high global oil prices due to the Russia-Ukraine war.

In the month under review, the report said NNPC lifted overall crude oil of 8.80 million barrels (export domestic crude) in March 2022, representing a 10 per cent decrease relative to the 9.77 million barrels lifted in February 2022

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