CEM REPORT, OIL & GAS | A total of N1.348 trillion was deducted from oil and gas earnings by the Nigerian National Petroleum Company Limited (NNPCL) between June to August 2022.
The fund which were supposed to be paid into the Federation Account, NNPCL claims they were used for subsidy cost, pipeline operations, repairs and management, strategic holding cost, and government priority projects.
This is according to a report submitted by the NNPCL to the Federation Account Allocation Committee (FAAC).
Data from the report reveals that N447.93 billion was deducted in July, N451.86 billion was deducted in June and N448.78 billion was deducted in August. for petrol subsidy payment.
Further breakdown of the report reveals that from the N447.93 billion deducted in July, the petrol subsidy gulped N319.17 billion, pipeline operations, repairs and management gulped N8.35 billion while strategic holding cost N989.74 million.
Also, N42.28 billion in July was spent on government priority projects.
For June, from the total N451.86 billion deducted, petrol subsidy accounted for N327.06 billion, pipeline operations, repairs and management accounted for N158.3 million, while strategic holding cost N339.9 million.
The company also deducted N18.4 billion in June for government priority projects.
Meanwhile, the NNPCL noted that it expects N341.09 billion from four oil companies for June 2022 domestic crude oil payable in September. A breakdown showed that Chevron with N131.32 billion, Mobil with N134.82 billion, SPDC with N45.23 billion, and First E&P with N29.72 billion were the companies involved.
Following the deduction by NNPCL from Federation Account revenue, the nation has lost N2.212 trillion to the petrol subsidy regime in the first seven months of 2022, Vanguard reports.
NNPCL has continued to maintain that without the Federal Government’s subsidy on petrol consumers would be paying N462 per litre, rather than the current pump price range of N174-N210 per litre.
Group General Manager, Group Public Affairs Division, (NNPCL), Garba Deen Muhammad, in a statement over the weekend, explained that the federal government is presently paying N297 per litre for the 68 million litres of petrol consumed daily.
He also disclosed that import in the year 2021 was 22.35 billion litres, which translated to an average supply of 61 million litres per day.
“The NNPC Ltd notes the average daily evacuation (Depot truck out) from January to August 2022 stands at 67million litres per day as reported by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA. Daily Evacuation (Depot loadouts) records of the NMDPRA do carry daily oscillation ranging from as low as 4 million litres to as high as 100 million litres per day”.