NNPC spends N623.16 billion on fuel subsidy

The Nigerian National Petroleum Corporation (NNPC), said it has spent N623.16 billion on subsidy from January to November, 2018.

The Petroleum Corporation body said it made this available to the Federation Account Allocation Committee (FAAC) at the last meeting which was held in Abuja, Nigeria where all the revenue generating agencies gave account of their performances in the year 2018.

In its report dated 19th December, 2018, the NNPC revealed that it also has an arrears of N67.23 billion for deductions made from the Federation Account Allocation Committee (FAAC). The report also revealed that there was a total FAAC deduction of N676.49 billion comprising of N599.74 billion as under recovery for Direct Sales Direct Purchase (DSDP) arrangement and N23.43 billion as under recovered from it’s refineries.

The document stated that the amount incurred as under-recovery by the NNPC was deducted from the Federation Account is as follows:
January N45.78 billion,
February N59.51 billion,
March N34.03 billion,
April N77.9 billion and
May N88.9 billion.

The breakdown of the N623.16 billion under-recovery revealed that N51.24 billion was incurred in January, while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively. The amount of under-recovery incurred by NNPC on PMS in the month of may dropped to N36.87 billion, but rose to N53.41 billion in June, N52.43 billion in July and N63.18 billion in the month of August.

The NNPC deducted about N68.6 billion in the month of June 2018, in July, August, September, October and November, it made deductions of N52.5 billion, N60.6 billion, N71.56 billion, N51.18 billion and N65.86 billion respectively.

Apart from the deductions made from FAAC, the amount which was spent on subsidy, or as under-recovery by the NNPC  rose to N71.8 billion in September, before dropping down to N51.18 billion and N65.86 billion in the months of October and November respectively.

According to the document, it was indicated that NNPC is currently subsidising  petrol through its under recovery arrangements.