NNPC Set to Deduct N672bn as Subsidy Hits N1.35tn within Four Months
The subsidy on Premium Motor Spirit, popularly called petrol, between January and March 2022 has risen to N675.93bn, according to the latest data obtained from the Nigerian National Petroleum Company Limited (NNPC) on Wednesday.
The NNPC has also informed the Federation Account Allocation Committee that it will deduct or recover N671.88bn from April 2022 proceeds due for sharing at the May 2022 FAAC meeting.
It described the N671.88bn as a value shortfall incurred by the NNPC, as the oil firm has remained the sole importer of petrol into Nigeria and has been subsidising the commodity using billions of naira monthly.
Figures obtained from NNPC in Abuja on Wednesday showed that the oil firm spent N210.38bn, N219.78bn and N245.77bn as subsidy on petrol in January, February and March 2022 respectively
This entails that within the three-month period the oil company had spent N675.93bn on PMS subsidy.
NNPC also described its subsidy spending as an under-recovery of PMS/value shortfall.
NNPC in its presentation to FAAC during the committee’s April 26, 2022 meeting informed the committee members that it would deduct over N671bn at their next meeting in May.
NNPC said, “The estimated value shortfall of N671,882,996,685.81 (consisting of N519bn for estimated April 2022 recovery plus N152bn of March 2022) is to be recovered from April 2022 proceeds due for sharing at the May 2022 FAAC meeting.”
NNPC further informed FAAC that the overall NNPC crude oil lifting of 9.77 million barrels (export and domestic crude) in February 2022 recorded a 1.71 per cent decrease relative to the 9.94 million barrels lifted in January 2022.
“Nigeria recorded 1.258million barrels per day production in February 2022 (OPEC),” NNPC disclosed in its presentation to FAAC.
According to the Oil Firm, the crude oil export revenue received in March 2022 amounted to $88.93m, while the gas export revenue received in March 2022 amounted to $32.04m.
NNPC added that for domestic crude and gas sales, the sum of N259, 539,170,912.93 was the gross domestic crude oil and gas revenue for the month of March 2022.
NNPC declared that the value shortfall of N245, 772,559,462.62 was charged for the month which comprises previous months’ outstanding and part of the February 2022 value shortfall.
Recall, monetary deductions by the national oil company from FAAC had kept on to depleting the funds being shared at the meeting, as these deductions were due to humongous subsidy spending being borne by the NNPC.
