NNPC To Deduct N672bn As Subsidy Hits N1.35tn In Four Months

The Nigerian National Petroleum Company Limited latest report has revealed tht the subsidy on Premium Motor Spirit, called petrol, has risen to N675.93bn between January and March 2022.

The NNPC group has 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.

As the sole importer of petrol in Nigeria and has been subsidizing the commodity with billions of naira monthly, the NNPC was described as incurring a value shortfall of N671.88bn.

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the report 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 implies that within the three-month period the oil company had spent N675.93bn on PMS subsidy.

However, NNPC, described its subsidy spending as an under-recovery of PMS/value shortfall.

At its meeting on April 26, 2022, NNPC presented FAAC with information about deducting more than N671bn at the group’s next meeting in May.

It says, “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.”

The oil firm further told FAAC that the overall NNPC crude oil lifting of 9.77 million barrels (export and domestic crude) in February 2022 recorded 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 stated in its presentation to FAAC.

The report further state that crude oil export revenue in March 2022 was 88.93 million dollars, while gas export revenue in March 2022 was 32.04 million dollars.