NNPC reportedly spends N623.16bn on fuel subsidy in 11 months

NNPC reportedly spends N623.16bn on fuel subsidy in 11 months

- The NNPC reportedly spent N623.16 billion on subsidy from January to November 2018

- A report the NNPC submitted to the Federation Account Allocation Committee shows a breakdown of the subsidy cost

- The report to FAAC was made at the last meeting in Abuja where revenue generating agencies gave an account of their performances in the year

The Nigerian National Petroleum Corporation (NNPC) has allegedly reported to the Federation Account Allocation Committee (FAAC) that it spent N623.16 billion on under-recovery, popularly known as subsidy, from January to November 2018.

According to The Nation, the report to FAAC was made at the last meeting in Abuja where revenue generating agencies gave the account of their performances in the year.

The NNPC in its report dated 19th December 2018 reportedly revealed that it also has arrears of N67.23 billion for deductions made from FAAC.

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The report said there is a total FAAC deduction of N676.49 billion comprising of N599.74 billion as under-recovery (subsidy) for Direct Sales Direct Purchase (DSDP) arrangement and the sum of N23.43 billion as under recover from its refineries.

The document said that the amount incurred by the NNPC as subsidy was deducted from the Federation Account as follows: January N45.78 billion, February N59.51 billion, March N34.03 billion, April N77.9 billion and May N88.9 billion.

Breakdown of the N623.16 billion subsidy showed that the sum of N51.24 billion was incurred in January while February, March and April recorded N58.66 billion, N36.09 billion, and N82.4 billion respectively.

In the month of May, the amount of subsidy incurred by NNPC on PMS dropped to N36.87 billion but rose to N53.41 billion in June, N52.43 billion in July and N63.18 billion in the month of August.

In the month of June 2018, the corporation deducted about N68.6 billion, in July, August, September, October and November the Corporation made deductions of N52.5 billion, N60.6 billion, N71.56 billion, N51.18 billion and N65.86 billion respectively.

Apart from the deductions from FAAC, the amount spent on subsidy by the NNPC went up to N71.8 billion in September before dropping again to N51.18 billion and N65.86 billion in the months of October and November respectively.

The document further shows that the Nigerian National Petroleum Corporation (NNPC) is currently subsidising Premium Motor Spirit, popularly known as petrol through its under recovery arrangements.

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Meanwhile, Legit.ng previously reported that the group managing director of the NNPC, Maikanti Baru, said that the subsidy on petrol has dropped to N20 per litre from over N80.

Baru made this known in Abuja on Monday, December 24, during a tour of filling stations with the Department of Petroleum Resources (DPR) and Nigeria Security and Civil Defense Corps (NSCDC) officials to ascertain the effective distribution of products to customers.

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Source: Legit Newspaper

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