NNPC: N270.83bn Petrol Subsidy Shortfall For Deduction in January FAAC – NNPC

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By Chibisi Ohakah, Abuja

Nigerian National Petroleum Corporation (NNPC) has said that the N270.83billion petrol subsidy shortfall announced in November will be recovered from the December, 2021 proceed due for sharing in January.

The value shortfall consisted of N220.11 billion for November and N50.72 billion deferred for recovery in December, 2021 Report. These were contained in the NNPC Monthly Operations Financial Report (MOFOR) released on Tuesday. 

In the report which Nigeria’s apex oil Corporation presented at the Federal Account Allocation Committee (FAAC) meeting held in Abuja last week, the corporation said a total sum of ₦203.73billion was realized as proceeds for the sale of white products in the month of July 2021 by the Petroleum Products Marketing Company (PPMC), a downstream subsidiary of the Corporation.

The amount for November brings the total figure for petrol subsidies in the first 11 months of 2021 to N1.446 trillion, the report said.  On the other hand, NNPC said the sum of N172,784,505,734.79 was the gross Domestic oil and gas revenue for the month of November, 2021.

“The recoveries were: Strategic Holding Cost and Pipeline repairs amounting to N174,518,095.89, Product losses worth N2,065,202,202.03. The value short fall for the month is N182,120,527,275.95. However, the sum of N131,400,236,846.95 was recovered while N50,720,290,429.00 was deferred for recovery in subsequent month to enhance federation remittance.

“The Estimated value shortfall of N270,831,143,856.56 is to be recovered from the December, 2021 proceed due for sharing at the January, 2022 meeting. This value shortfall consists of N220,110,853,427.56 for November and N50,720,290,429.00 deferred for recovery in December, 2021 FAAC Report.”

The MOFOR report also disclosed that Oil export revenue received in November 2021 amounted to $4.18 million while and other receipts in the month was N16.63 billion.

“Feedstock valued at $51.85 million was sold to during the period out of which $Nil was received during the month. The Expected receipts slipped into the next month. “The sum of $132.77 million being miscellaneous receipts, gas and haulage fees and interest income was received in November 2021,” it added.

The report also revealed that total revenues generated from the sales of white products for the period July 2020 to July 2021 stood at over ₦2.563 trillion where PMS contributed about 99.67% of the total sales.

In the Downstream sector, to ensure sustained and effective distribution of petroleum products, especially Premium Motor Spirit (PMS), across the country, the NNPC said it continued to monitor the daily stock of petrol to achieve success in this regard.

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