The Nigerian National Petroleum Company (NNPC) Limited has reported that it has spent N1.301 trillion on fuel subsidy and rehabilitation of refinery between January and May this year.
This was contained in a report the company presented to the Federation Account Allocation Committee (FAAC) on Monday for the month of June.
According to NNPC, a larger part of the money which amounted to the sum of N1.274 trillion was spent on petrol subsidy within the five months under review, while refinery rehabilitation gulped N9.11billion in January, March and April, which amounted to a total of N27.33billion.
A Punch analysis of NNPC’s monthly fuel subsidy spendings showed a steady increase in the amount incurred as subsidy by the Nigerian government through company, as data from the NNPC’s report indicated that N210.38billion, N219.78billion, N245.77billion, N271.59billion and N327.1billion were spent on fuel subsidy in the months of January, February, March, April and May this year.
Out of the four of Nigeria’s refineries, which have gone moribund, only the Port Harcourt refinery is currently under rehabilitation.
Based on the report it presented to the FAAC, NNPC further noted that it would deduct N845.15billion from what would be shared by the committee next month.
The Nigeria’s apex oil firm stated that, “The value shortfall on the importation of PMS recovered from May 2022 proceeds is N327,065,907,048.06, while the outstanding balance carried forward is N617bn.
“The estimated value shortfall of N845,152,863,012.97 (consisting of arrears of N617bn plus estimated May 2022 value shortfall of N227,721,200,478.23) is to be recovered from June 2022 proceed due for sharing at the July 2022 FAAC meeting,” NNPC added.
It was discovered that the amount NNPC spends on fuel subsidy on monthly basis has been negatively affecting the revenues it accrues to the Federation Account, thereby limiting the funds being shared by the three tiers of government.
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