The Nigerian National Petroleum Company Limited has announced the deduction of N328 billion as petrol subsidy from what would be shared by the Federation Account Allocation Committee (FAAC) for the federal, states and local governments in April.
The development means that there will be a shortfall in what the federating units would share at the monthly FAAC meeting.
The national oil company which disclosed this in its latest presentation to the FAAC meeting for March 2022 held in Abuja also stated that the federal government through it (NNPC) spent N430.165 billion on subsidy for petrol in January and February 2022.
In the presentation, NNPC described its subsidy spending as an under-recovery of PMS/value shortfall.
“The estimated value shortfall of N328,004,248,900.01 (consisting of N253,004,248,900.01 for February 2022 recovery plus the balance of November 2021 spot cargo arrears of N75,000,000,000.00) is to be recovered from March 2022 proceed due for sharing at the April 2022 FAAC meeting,” it said.
It further noted that a value shortfall of N219,783,148,011.13 was charged for the month (of March) which comprises of N195,975,376,910.12 for January 2022 plus part of the November 2021 spot cargo arrears of N23,807,771,101.00.
In its notes to the March 2022 FAAC executive summary, the oil company stated that the overall NNPC crude oil lifting of 9.94 million barrels (export and domestic crude) in January 2022 recorded 22.26 per cent increase relative to the 8.13 million barrels lifted in December 2021.
It said Nigeria recorded 1.39 million barrels per day production in January 2022, citing the Organisation of Petroleum Exporting Countries.
NNPC stated that crude oil export revenue received in February 2022 amounted to $2.73 million, while domestic gas receipts in the month was N13.10 billion.
It stated that the sum of N266, 527,887,255.56 was the gross domestic crude oil and gas revenue for the month of February 2022.
