NNPC sets to deduct N242.53bn on subsidy for March

The Nigerian National Petroleum Company Limited (NNPC) has indicated plans to deduct a total sum of N242.53billion as value shortfall in connection with subsidy on Premium Motor Spirit, which is also known as  petrol, from the Federation Account for February in the distributable revenue rescheduled  for sharing in the March,2022.

The NNPC ltd made this known in its recent presentation to the FAAC meeting for the month in view.

The Corporation said, “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38bn.

“The recovery consists of December 2021 value shortfall of N176.48bn plus the outstanding value shortfall recovery of N33.9bn accrued over the 2021 year. The November 2021 spot arrears of N98.81bn is also outstanding.

“The estimated value shortfall of N242.53bn (consisting of N143.72bn for January 2022 recovery plus November spot arrears of N98.81bn) is to be recovered from February 2022 proceeds due for sharing at the March 2022 FAAC meeting.”

The Corporation did not remit any amount to FAAC in February revenue sharing as a result of subsidy on Petrol and outstanding arrears.

In March, Governor Kayode Fayemi of Ekiti State, who doubles as the Chairman,  Nigeria Governors’ Forum (NGF) had said that the Nigeria National Petroleum Company (NNPC) Limited contributed nothing to the Federation Accounts Allocation Committee (FAAC) in February.

This happened even when global price of crude oil is at record high, trading above $110 per barrel, payment of subsidy has eroded almost 90 per cent of the fund expected in the FAAC. In January 2022, only N20.1 billion was remitted.

The NNPC however, have also said that it will begin to phase out the subsidy regime but did not provide time-lines .