Nigeria Records Zero Revenue from Crude Oil Export in September, Despite NNPC Lifting Over 1 Million Barrels

Nigeria Records Zero Revenue from Crude Oil Export in September, Despite NNPC Lifting Over 1 Million Barrels

  • The Nigeria National Petroleum Corporation has provided a breakdown of its sales and expenses for the month of September
  • In its latest report published on its website, NNPC revealed that despite producing over 1 million barrels of oil it made no sales
  • The NNPC disclosure mirrors the auditor general's questioning in 2019 about why there was no record of money received for more than 104.48 million barrels of oil lifted

Nigeria got no revenue from crude oil export in the month of October despite an average daily oil production of 1.417 million barrels in the month of September.

The Nigeria National Petroleum Corporation (NNPC) reveals this in its report to the Federation Account allocation Committee (FAAC) released at the weekend.

This again reechoes 2019, where over 2 million barrels of oil lifted were not accounted for by NNPC in a recently released auditor general report.

Read also

Zenith, GTB, Access, other top Nigerian banks lose N32.19 billion in one week following shares decline

Over the years, China, India, as well as the United States have been regular buyers of Nigerian oil.

Nigeria makes no money from export despite NNPC producing 1.417 million barrels of oil reechoes 2019
Close up aerial photo of a large oil tanker, with an oil rig Credit: HeliRy
Source: Getty Images

PAY ATTENTION: Install our latest app for Android, read best news on Nigeria’s #1 news app

Part of the report reads:

"Sales reciept: No Crude Oil export revenue for the month of September 2021."

The report also noted that the overall NNPC crude oil lifting of 11.49Mbbls (Export & Domestic Crude) in September 2021 recorded 98.5 percent increase relative to the 5.79Mbbls lifted in August 2021

Other Sources of revenues for NNPC

Despite no revenue for NNPC through export sales of oil, the report explained that the sum of N252.96bn (N252,968,629,898.13) was the Gross Domestic Crude Oil and Gas revenue for the month of October, 2021.

NNPC stated:

“Gas: Domestic Gas and other receipts in the month was N6.78 billion. The Domestic Gas (NGL) in the month was N4.07 billion. NLNG: Feedstock valued at $59.43 million was sold to NLNG during the period out of which $52.57 million was received during the month. The difference being MCA obligations, Gas reconciliation and Credit Notes

Read also

More borrowing has increased Nigeria’s public debt to N38trn in 2021, DMO Says

“Other Receipts: The sum of $95.63Mn being miscellaneous receipts, Gas and Ullage fees and Interest income was received in October 2021”.

On expenses, NNPC said strategic holding cost, pipelines repairs in the month of September gulped N7.75bn(N7,757,631,778.84).

It added:

"The various pipelines come at a cost worth N143.38 million (N143,386,571.87) and value shortfall of N163.7bn (N163,709,314,928.61) This comprised of the N123.7bn (N123,709,314,928.61) for September 2021 and N40bn value shortfall deferred in June 2021.
“The October, 2021 value shortfall of N199,007,758,422.75 is to be recovered from the November, 2021 proceeds due for sharing at the December, 2021 FAAC meeting."

NNPC fails to explain missing N2trn worth of Oil

Meanwhile, the Auditor-General has raised an alarm on domestic crude oil lifted by the NNPC and was not accounted for in 2019.

The 104.48 million barrels of missing crude oil could have added at least N2 trillion to the federal government's coffers.

Read also

Zenith, Access Bank lead Nigerian banks to rake in N88.9bn in 9 months from account maintenance

The federal government's 2019 budget of N8.83trn was largely financed by debts which currently stands at N35.5trn as of June 30.


Online view pixel