fuel subsidy

Figure contradicts N270bn monthly average claims by FG

By Obas Esiedesa, Abuja

The Nigerian National Petroleum Corporation Limited has disclosed that it incurred N127.035 billion in December, 2021 as petrol subsidy, a 73 percent drop from N220 billion recorded in November.

The December figure brought the total amount spent by the government on petrol subsidy in 2021 to N1.573 trillion.

NNPC which is the sole importer of petrol deducts payments for petrol subsidy directly from its expected contribution to the Federation Account and carries it in its books as value shortfall.

The Corporation in its presentation to the Federation Account Allocation Committee meeting of 19th and 20th January, 2022, said the amount would be recovered from the January 2022 proceed due for sharing at the February FAAC meeting.

The latest subsidy figure questions the validity of claims made by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed and the Group Managing Director of NNPC, Mallam Mele Kyari who stated that the country spent a monthly average of N270 billion of petrol subsidy last year.

READ ALSO: Petrol Subsidy: Govt should fix refineries before subsidy removal ― IPMAN

Checks by Vanguard on subsidy payments by NNPC in 2021 showed that the highest amount was N220 billion recorded in November. This is followed by N199 billion recorded in October.

Other monthly figures are: September N123.70 billion, August N149.28 billion, July 173.13 billion, June 143.28 billion, May 114.34 billion, N126.29 billion, April N126.29 billion, March N111.96 billion, February N60.4 billion and January N25.37 billion.

NNPC in the report to FAAC also disclosed that crude oil and gas export revenue received in December 2021 amounted to $5.13 million and $40.14 million respectively.

It stated that feedstock gas receipt from NLNG was $113.39 million which included receipt of $51.85 million “which slipped to December that ought to have been received in November 2021.

“Other Receipts: The sum of $62.35 million being miscellaneous receipts, Gas and Ullage fees and Interest income was received in December 2021”.

On domestic crude oil and gas sales, NNPC reported that “the sum of N352,518,463,538.25 was the gross domestic crude oil and gas revenue for the month of December, 2021.

“The recoveries were: Strategic Holding Cost and Pipeline repairs amounting to N3,976,516,985.27, Product losses worth N3,307,613,578.83 . The November, 2021 Value Shortfall recovery on the importation of PMS amounted to N270,831,143,856.56. The recovery consists of November 2021 Value Short Fall of N220,110,853,427.56 plus the outstanding Value Short Fall recovery of N50,720,290,429.00 for the month of October, 2021.

“The Estimated value shortfall of N127,035,585,356.25 is to be recovered from the January, 2022 proceed due for sharing at the February, 2022 FAAC meeting”.

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