Despite Explosions, NNPC Says it Spent N1.3trn on Pipelines, Others in 11 Months

Despite Explosions, NNPC Says it Spent N1.3trn on Pipelines, Others in 11 Months

  • Nigeria's Petroleum Company said it spent N1.3 trillion to maintain oil pipelines across the country despite explosions
  • Record reveal that the company has seen dwindling revenue and expenditures in 2021 which has also witnessed marginal increase in oil prices
  • Available data shows that the total amount required for maintenance of priority projects is about N3.4 trillion.

According to data from the National Petroleum Company (NNPC), Nigeria has spent a total of N1.3 trillion on priority oil sector projects in 2021.

The Punch reports that the company also recorded dwindling funding of N1,1 trillion in the money needed to fund some priority projects.

NNPC Managing Director, Mele Kyari
NNPC Managing Director, Mele Kyari Credit: Mele Kyari
Source: Facebook

An investigation of the company’s Statement pf Joint Venture Recovery and Government Priority Projects showed that the oil company consistently made expenditures on the projects from January to November 2021.

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Shortfalls sighted in report

It also published shortfalls in the budget of the projects in each month during the review period.

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Data from the oil outfit also show that the total amount needed for cost recovery and government priority projects during the period was N3.4 trillion.

It, however, stated that the actual functional dollar funding level for the projects for the 11 months was $3.21bn (N1.332 trillion), leaving a deficit of $2.686bn (N1.114 trillion).

NNPC represents the Federal Government in many strategies collaborative ventures with transnational oil companies operating within and outside the country.

Remittances to FG continues to decline

Meanwhile, Legit.ng reported that as the Nigerian government thinks of removing petrol subsidy next year, the country’s National Petroleum Company (NNPC) has continued to remit less amount of money to the federation account.

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NNPC remittances to FG continues to decline as company pays Nigerian government N10.5bn in November

The NNPC remitted the sum of N10.54 billion to the Federation Account Allocation Committee (FAAC) in November 2021 from the proceeds of sales of crude oil and gas in October.

It gave this account during a presentation to FAAC for the month of December 2021, a report by Nairametrics says.

Source: Legit.ng

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