The Nigerian National Petroleum Corporation will be unable to make any contribution to the Federal Accounts Allocation Committee (FAAC) in April due to fuel subsidy payment, a development that hampers its plans.
In an April 26 letter to the Attorney General, seen by BusinessDay, the NNPC said:
“The Accountant General of the Federation is kindly invited to note that the average landing cost of Premium Motor Spirit (PMS) for the month of March 2021 was N184 per litre as against the subsisting ex-coastal price of N128 per litre, which has remained constant notwithstanding the changes in the macroeconomics variables affecting petroleum products pricing.
“As the discussions between Government and the Labour are yet to be concluded, NNPC recorded a value shortfall of N111,966,456,903.74 in February 2021 as a result of the difference highlighted above.
“Accordingly, the AGF is invited to note that the sum of N111,966,456,903.74 will be deducted from April 2021 Oil and Gas Proceeds due to the Federation in May 2021, which will translate to zero remittance to the Federation Account from NNPC in the month of May 2021. This is to ensure the continuous supply of Petroleum Products to the nation and guarantee energy security,” the NNPC said.
