Petrol Subsidy Hit ₦1.16trn In 11months – NNPC

EU Seeks Stronger Partnership With NNPC

The money spent on subsidising Premium Motor Spirit (PMS), popularly called petrol, rose to ₦1.16tn between January and November 2021, this is according to the latest data from the Nigerian National Petroleum Company (NNPC) Limited.

The data also revealed that NNPC’s remittances to the Federation Accounts Allocation Committee (FAAC) in the 11-month period dropped by ₦1.78tn.

NNPC revealed that it had maintained the petrol subsidy since the beginning of 2021.

In the report, the oil company 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.

The latest funding performance data showed that while nothing was recorded as under-recovery of PMS/value shortfall in January, the oil company spent ₦25.374bn, ₦60.396bn and ₦61.966bn in February, March and April respectively.

In May, June and July, NNPC recorded under-recoveries/value shortfalls of ₦126.298bn, ₦164.337bn and ₦103.286bn respectively.

The oil firm said the under-recovery/value shortfall stood at ₦173.132bn, ₦149.283bn, ₦163.709bn and ₦131.4bn in August, September, October and November respectively.

The monthly remittances showed that in January, February, March and April, the NNPC remitted ₦90.86bn, ₦64.161bn, ₦41.184bn and nothing respectively to FAAC.

The national oil firm remitted ₦38.608bn, ₦47.162bn, ₦67.28bn, ₦80.03bn, ₦67.533bn, ₦14.85bn and ₦10.536bn to FAAC in May, June, July, August, September and November October respectively.

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