- The Nigeria National Petroleum Company Limited has failed to make any remittances to the federal accounts in seven months
- This comes despite a huge revenue generated by company as it says it is battling huge petrol subsidy payments
- There has been increased sales of crude oil in the last few months while Nigeria has ramped its crude oil production to 1.08 million barrels per day
The Nigerian National Petroleum Company Limited (NNPC) has not remitted into the federation account for seven consecutive months as it battles huge subsidy payments.
The company, which said it is adopting the Saudi Arabia-owned Aramco model, has deducted funds meant for the Federation Accounts Allocation Committee (FAAC) to cover petrol subsidy costs over time, resulting in zero revenue payments to the federal government.
Increased crude oil, yet no remittance to FG
According to the latest report by the company, N448,78 billion was deducted in July to cover subsidy costs.
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BusinessDay said that the report revealed that Nigeria spent N1.04 trillion on petrol subsidies over seven months while N1.04 trillion was brought forward.
The lack of remittance in July came irrespective of increased revenue from crude oil sales at $111 per barrel and oil production increased to 1.08 million barrels per day.
The company recorded a petrol subsidy of N210.38 billion and N245.77 billion in January, February and March of 2022, while it spent N271 billion, N327.07 billion and N319.18 billion in April, May, and June, respectively.
NNPC to charge FG for subsidy payments
Gross domestic crude and gas revenue was N400.47 billion, representing 10.07 below the petrol subsidy payment in the same month.
The company’s CEO, Mele Kyari, stated that the firm would charge the Nigerian government a fee to carry out subsidy payments.
NNPC Is now Nigeria’s biggest company by shares Capital As It Enters a New Era After 44 Years
Legit.ng reported that President Muhammdu Buhari will Tuesday, 19 July 2022, officially change the status of the Nigerian National Petroleum Company Limited (NNPC) to become a fully Limited Liability Company. NNPC's operations will now be fully compliant with the terms of the Companies and Allied Matters Act (CAMA) of 20.
This means that the general public can now buy and sell NNPC shares, but not yet.
NNPC, on the other hand, established an initial share capital of N200 billion when it was incorporated with the Corporate Affairs Commission.