Subsidy payments affect NNPC’s remittance into federation account


According to the latest data , the contribution of the Nigerian National Petroleum Corporation (NNPC) to the federation account has dropped by a whopping N13 billion in September 2021.

The was made public by the corporation through a document detailing its monthly remittances to the Federation Account Allocation Committee (FAAC).

According to the document, the corporation’s remittance to the federation amounted to N67.53 billion in the month under review, which a clear shortfall from that of August where the state-owned oil firm remitted 80.03 billion to the federation purse.

Based on inquiry, it revealed that the corporation remitted N38.6 billion, N47.1 billion, and N67.2 billion in May, June, July, respectively.

In April, the state owned oil firm did not remit anything to the federation account due to the burden of petroleum shortfall, also known as under-recovery (fuel subsidy).

The document also showed that NNPC had spent N864.07 billion year-to-date to cater for under-recovery.

However, in the month under review, NNPC paid N149.28 billion as subsidy payment — much lower than N173.13 billion in August

Since the 2021 budget did not cater for subsidy payments, the corporation has been deducting subsidy payments from oil and gas proceeds due to the three tiers of government.

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