A total of N322bn for January 2022 domestic crude oil sales by four multinational oil companies operating in the upstream sector will be paid in January 2022, the Nigerian National Petroleum Company Limited has said.
According to the Federation Accounts Allocation Committee (FAAC) report presented by NNPC limited, the state-owned oil company explained that January crude oil exports of 777, 846 barrels, valued at N75 billion was payable in February 2022, while the domestic crude oil payment of N322 billion is expected in April 2022.
“January 2022 Domestic Crude Oil Payable in April 2022 by NNPC in line with the 90 days payment terms,” NNPC said in its March 2022 FAAC report.
It outlined the firms from where the funds were being expected to include Chevron Nigeria Limited (CNL), Mobil Producing Nigeria (MPN), Shell Petroleum Development Company (SPDC), and First Exploration and Production.
According to NNPC, CNL would be paying for 1.8 million of domestic crude valued at N68.1bn, while MPN would remit N65.9bn for 1.8 million barrels of domestic crude oil.
The SPDC and First E&P would be paying for 4.6million and 682,445 barrels of domestic crude oil valued at N163.2bn and N25.5bn, respectively.
The NNPC Limited’s report also showed for the second time in 2022, the state-owned Oil Company will be failing to remit a kobo to the federation account despite the rising international prices of oil.
For instance, NNPC Limited earned N656.68 billion in revenue in the first two months of 2021 (N383.09 billion in January and N273.592 billion in February).
Out of this amount, NNPC said it spent N656.682 billion on various projects, including Gas Infrastructure Development, Frontier Exploration Services, Refinery Rehabilitation, Subsidy, etc.
A total of N383.090 billion was spent on the projects in January and another N273.592 billion in February.
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Subsidy payment, also known as Under-Recovery of PMS/Value Shortfall alone, gulped N219.783 billion, while refinery rehabilitation cost N9.11 billion within the two months.
For Frontier Exploration Services and Pipeline Security & Maintenance cost, N8.4 billion and N1.1 billion were spent.
On March 3, 2022, state governors lambasted the NNPC for not remitting any funds at last month’s FAAC meeting.
The Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, had also wondered how the oil firm was bold enough to declare profit when it had not been meeting its FAAC obligations.
Fayemi had disclosed this alongside other governors during the Nigerian Governors’ Forum session on natural resources at the Nigeria International Energy Summit 2022 in Abuja.
He specifically pointed out that in the last Federation Accounts Allocation Committee meeting in February, the NNPC made zero remittance to the federation.
“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.
Several states were reported to have found it difficult to pay salaries in February following the zero remittance from the NNPC in that month.
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