ACCORDING to the latest data acquired on Wednesday from the Nigerian National Petroleum Company Limited, the subsidy on Premium Motor Spirit, also known as petrol, increased to N675.93 billion between January and March 2022.
The NNPC has also told the Federation Account Allocation Committee that it will withhold or reclaim N671.88 billion from the April 2022 revenues that are slated to be shared at the FAAC meeting in May 2022.
It termed the N671.88 billion as a value deficiency incurred by the NNPC, which has been Nigeria’s sole importer of petrol and has been subsidizing the commodity with billions of naira on a monthly basis.
According to figures received by our correspondent from the Nigerian National Petroleum Corporation (NNPC) in Abuja on Wednesday, the oil company spent N210.38 billion, N219.78 billion, and N245.77 billion on petrol subsidies in January, February, and March 2022, respectively.
This means that the oil corporation spent N675.93 billion on PMS subsidies in just three months. NNPC, on the other hand, portrayed its subsidy spending as a deficiency in PMS/value recovery.
Meanwhile, at its presentation to FAAC on April 26, 2022, NNPC told the committee members that at their next meeting in May, it will deduct about N671 billion.
It said, “The estimated value shortfall of N671,882,996,685.81 (consisting of N519bn for estimated April 2022 recovery plus N152bn of March 2022) is to be recovered from April 2022 proceeds due for sharing at the May 2022 FAAC meeting.”
The oil company also told FAAC that the entire NNPC crude oil lifting in February 2022 was 9.77 million barrels (export and domestic crude), down 1.71 percent from the 9.94 million barrels lifted in January 2022.
“Nigeria recorded 1.258million barrels per day production in February 2022 (OPEC),” NNPC stated in its presentation to FAAC.
In March 2022, crude oil export revenue was $88.93 million, while gas export revenue was $32.04 million, according to the report.
The gross domestic crude oil and gas revenue for the month of March 2022, according to the NNPC, was N259,539,170,912.93 for domestic crude and gas sales.
It went on to say that a value shortfall of N245,772,559,462.62 was charged for the month, which included prior months’ outstanding and a portion of the value shortfall for February 2022.
