NNPC Details Why No Money Was Paid Into Federation Account in 6 Months Despite Oil, Gas Revenue of N2.3trn

NNPC Details Why No Money Was Paid Into Federation Account in 6 Months Despite Oil, Gas Revenue of N2.3trn

  • NNPC failed to remit a kobo to the federation account since the start of 2022, despite the rising international prices of oil and high demand for gas
  • The lack of remittance has put serious pressure on the finances of federal, state and local governments
  • NNPC has provided a breakdown of how it spent all the money it made from oil sales

The Nigerian National Petroleum Company (NNPC) Limited has provided an explanation on why it has failed to remit a kobo to the federation account since the start of 2022.

The explanation was detailed in its July FAAC presentation document retrieved from its website.

The document showed that NNPC from crude oil and gas Sales made a whopping N2.38 trillion from January to June 2022.

NNPC remits nothing to government account
Mele Kyari is the CEO/Group Managing Director at Nigerian National Petroleum Corporation Credit: NNPC
Source: Twitter

However, NNPC said all the money was spent on 10 projects during the period leaving the three tiers of government with nothing.

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The projects NNPC listed include Subsidy payment, refineries repairs, Pipeline Security & Maintenance cost, oil search(Frontier Exploration Services), National Domestic Gas Development, cost recovery/cash call.

Others are Nigeria Morocco Pipeline, Renewable Energy Development (RED), Pre-Export Financing, Gas Infrastructure Development and Crude Oil Pre-Export Inspection Agency Expenses(NESS FEES).

Breakdown of NNPC expenditure

According to its expenditure breakdown provided by NNPC in its FAAC report, it paid N1.59 trillion on fuel subsidy, BusinessDay reports.

It noted that the Subsidy payments rose from N210 billion in January 2022 to N319 billion in June 2022 as global oil prices increased.

While the next big spending was N658.97 billion spent on cost recovery/cash call tagged T1/T2.

Other expenses include Pipeline securities, N12.42 billion, and Oil search, N14.32 billion.

  • Nigeria Morocco Pipeline- N3bn
  • Pre-Export Financing- N35bn
  • Gas Infrastructure Development - N7.4bn
  • Refineries rehabilitation- N54.6bn
  • National Domestic Gas Development- N8bn

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NNPC sets date for completion of Port Harcourt refinery

Legit.ng reported that Mele Kyari the Group Managing Director of the Nigeria National Petroleum Company (NNPC), promised that the Port Harcourt refinery would be ready by March 2023.

He made the promise before the House of Representatives on the resumption of investigation on the state of the country’s refineries.

When asked, Kyari, represented by the General Manager, Refineries & Petrochemicals, Mustapha Yakubu, reaffirmed the expected completion date to the lawmakers.

Source: Legit.ng

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