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Sunday, September 17, 2023

Subsidy Payment Gulped N149bn As NNPC Remits N67bn To Federation Account

The total contribution of the Nigerian National Petroleum Corporation (NNPC) to the federation account dropped by N13 billion in September 2021,TheCable reports.

The corporation made this known in a document seen by TheCable detailing its monthly remittances to the Federation Account Allocation Committee (FAAC).

According to the document, the corporation remittance to the federation amounted to N67.53 billion in the month under review.

In August, the state-owned oil firm remitted N80.03 billion to the federation purse.

Checks showed that the corporation remitted N38.6 billion, N47.1 billion, and N67.2 billion in May, June, July, respectively.

In April, TheCable had reported that the corporation did not remit revenue to the federation account due to the burden of petroleum shortfall, also known as under-recovery (fuel subsidy).

The document also showed that NNPC had spent N864.07 billion year-to-date to cater for under-recovery.

In the month under review, NNPC paid N149.28 billion as subsidy payment — much lower than N173.13 billion in August

Since the 2021 budget did not cater for subsidy payments, the corporation has been deducting subsidy payments from oil and gas proceeds due to the three tiers of government.


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