The Nigerian National Petroleum Corporation (NNPC) has revealed that it would deduct N163.7 billion fuel subsidy payment from its contribution to FAAC in November.
The corporation announced that it spent N123.73 billion on petrol subsidy in September 2021 which was not deducted due to a deficit position.
The corporation in its report to the Federation Account Allocation Committee (FAAC) for October meeting said the N123.7 billion, with additional N40 billion deferred deduction would be deducted from FAAC remittances for November.
The corporation said it deducted the value shortfall or fuel subsidy payment of N149.28 billion from the October remittances. Other deductions made were: N629.28 billion for Strategic Holding cost and Pipeline repairs and N1.67 billion for product losses.
NNPC also reported that “the sum of N265.13 billion was the Gross Domestic Crude Oil and Gas revenue for the month of September, 2021.”
The overall NNPC Crude Oil lifting declined by 33.5 per cent in August to 5.79 mbbls for Export & Domestic Crude compared to the 8.71Mbbls lifted in July 2021.
Nigeria recorded 1.417 million barrels per day production in August,2021 while Crude Oil export revenue received in September 2021 amounted to $8.38 million equivalent to N3.22 billion.
With no provision for petrol subsidy in the 2021 Budget, NNPC has resorted to direct deduction from FAAC remittance, which it terms ‘value shortfall’ in its books.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed had on Monday disclosed that the federal government would continue to subsidise petrol consumption till June 2022.