…NNPC Continues With FAAC Deductions
Olusola Bello
The Federal, states and Local Governments continue to struggle to meet their financial obligations following Nigerian National Petroleum Corporation (NNPC) continuing deduction from the federation account.
In this month of August the NNPC would withhold N117.4 billion from the three tiers of government as parts of it efforts to redeemed it expense on fuel subsidy.
According to a presentation made by NNPC in July to FAAC only a paltry sum of N47.1 billion would be made available to the three tiers of government this August. However, there would be a shortfall of about 75 billion from amount projected which is about N122 billion,
From the presentation made available by NNPC in which it stated how it arrived at what it would deduct for the month, it was revealed that N114.3 billion was deducted in June, while an additional N50 billion, which it said was in arrears, was also subtracted.
By the end of this month the total amount the NNPC has deducted from the federation account would have hit of N608.808 billion.
The volume of crude oil lifted by NNPC for both export and domestic was in May 2021 was 11.58Mbbls. this was 27 percent increase from the 9 million it lifted in April recorded 29.27 per cent increase relative to the 9.42Mbbls lifted in April 2021. The Crude oil export revenue received in June 2021 amounted to $11.68 million, equivalent to N4.5 billion, while domestic gas receipts in the month was N37.4 billion.
Nigeria in the same month maintained 1.53 million bpd of the Organisation of Petroleum Exporting Countries (OPEC) Production cut in May 2021, excluding condensates. While the
Feedstock valued at $48.02 million was sold to the Nigeria Liquefied Natural Gas Limited (NLNG) during the period, out of which $36 million was received during the month, with the difference being Modified Carry Agreement (MCA) obligations, gas reconciliation and credit notes.
The sum of $136.15 million, being miscellaneous receipts, gas and ullage fees and interest income was received in June 2021, the document disclosed. .
“The sum of N114,337,097,352.49, being the value shortfall arising from the difference between the landing cost and ex-coastal price of petrol recorded in May 2021, plus the N50 billion arrears of March 2021, was applied on the gross domestic receipts before arriving at the net receipt of N47.16 billion.
“The June, 2021 value shortfall of N170,435,950,434.47 is to be deducted from the July, 2021 proceeds due for sharing at the August, 2021 FAAC meeting,” the NNPC FAAC document noted.
Year-to-date, it showed that while N90.86 billion was remitted to FAAC in January, N64.161 was contributed in February, while it was N41.184 billion in March. NNPC remitted zero naira in April, but was only able to make a payment of 38.608 and N47.162 in May and June respectively.
