The Nigerian National Petroleum Company (NNPC) Limited has revealed that subsidy on petroleum products gulped N1.03tn in the first 10 months of 2021.
The oil firm disclosed this in its latest report containing the presentation made to the Federation Accounts Allocation Committee (FAAC) meeting in November 2021.
The document also indicates that the NNPC plans to deduct N199bn for the payment of subsidy in December as it would deduct its October 2021 value shortfall of N199bn from its November 2021 proceeds meant for sharing at the December 2021 meeting.
In the report, the oil firm referred to its subsidy spending as under-recovery, as it had repeatedly stated that it had no authorisation by the National Assembly to pay subsidy.
A study of the latest report by the NNPC showed that while nothing was recorded as under-recovery of the PMS/value shortfall in January this year, the oil company spent N25.374bn, N60.396bn, and N61.966bn in February, March, and April respectively.
In May, June and July, the NNPC recorded under-recoveries (petrol subsidies)/value shortfalls of N126.298bn, N164.337bn and N103.286bn respectively.
The oil firm further posted petrol subsidy spending/value shortfalls of N173.132bn, N149.283bn and N163.709bn in August, September and October respectively.
In its notes to the November 2021 FAAC, the national oil company stated that its overall crude oil lifting of 11.49 million barrels (export and domestic crude) in September 2021 recorded 98.5 per cent increase relative to the 5.79 barrels lifted in August 2021.
On sales receipt, the NNPC stated that there was no crude oil export revenue for the month of September but stated that domestic gas and other receipts in the month was N6.78bn.
It stated that the domestic gas receipt in the month was N4.07bn, adding that feedstock valued at $59.43m was sold to Nigeria Liquefied Natural Gas company during the period, out of which $52.57m was received during the month.
For other receipts, the oil firm stated that the sum of $95.63m being miscellaneous receipts, gas and ullage fees and interest income were received in October 2021.
