• Friday, July 19, 2024
businessday logo

BusinessDay

NNPC fails to remit to FG for seven straight month

NNPC pays N140.55bn for Oando-branded retail stations, jetty, others

The Nigerian National Petroleum Company Limited (NNPC) has failed to make remittances into the federation account for the seventh month in a row on the back of huge subsidy payments.

The NNPC has deducted funds meant to be remitted to the Federation Accounts Allocation Committee (FAAC) to cover petrol subsidy over the months, resulting in zero revenue remittances.

According to the latest report by the NNPC, the sum of N448.78 billion was deducted in July to cover petrol subsidy.

Data obtained from the report showed that the country spent N2.04 trillion on petrol subsidy over a seven-month period, with N1.04 trillion carried forward.

July’s zero remittance came despite the potential for increased revenue from an average oil price of $111/barrel and oil output of 1.08 million barrels per day.

Read also: Nigeria faces tough choice of N6trn petrol subsidy in 2023

Petrol subsidy payments totalled N210.38 billion, N219.78 billion, and N245.77 billion in January, February, and March 2022, respectively. The country spent N271 billion, N327.07 billion, and N319.18 billion in April, May, and June, respectively.

However, gross domestic crude oil and gas revenue was N400.47 billion, which was 10.07 percent less than the petrol subsidy payment in the same month, according to the report.

“The Value Shortfall on the Importation of PMS recovered from July 2022 proceeds is N448,782,119,154.91, while the outstanding balance carried forward is N1,044,514,420,619.73,” it said.

Meanwhile, in July, Mele Kyari, group CEO of NNPC, said the oil company would charge the federal government a fee to carry out petrol subsidy payments.