Remittances by the Nigerian National Petroleum Company (NNPC) Limited to the federation account dropped by N1.581tn between January and October this year.
This was revealed from figures released by the NNPC showing that the drop was due majorly to the amount spent on subsidising Premium Motor Spirit, popularly called petrol.
N2.093tn was the net revenue that should have been remitted to the Federation Accounts Allocation Committee (FAAC) for sharing among the three tiers of government between January and October 2021.
However, what was actually shared by the three tiers of government during the 10-month period was put at N511.667bn.
The figures show that petrol subsidy alone gulped as much as N1.027tn during the period while pipeline security and maintenance cost consumed N42.76bn and frontier exploration services took N27.95bn, among other expenditures.
BizWatch Nigeria recalls that the deductions by the NNPC from its remittances to FAAC had raised diverse concerns among state governors.
The Governor of Kaduna State, Nasir El-Rufai, had recently decried the high cost of fuel subsidy, which according to him, was not reasonable.
He stated that the Nigerian Governors’ Forum had met and agreed to back the Federal Government’s transport palliative scheme as well as halt the petrol subsidy regime.
