20 March 2019

Nigeria: NNPC Remits $1.4bn, N851bn to Federation Account

The Nigerian National Petroleum Corporation, NNPC, remitted $1.413 billion, an equivalent of N432.378 billion, to the Federation Account in 2018, an improvement by 50 per cent when compared to $942.244 million, an equivalent of N288.327 billion, remitted in 2017.

According to data obtained from the NNPC's Monthly Financial and Operations Report for December 2018, the amount remitted to FAAC accounted for 25.3 per cent of total proceeds from the export of crude oil, gas and other commodities by the corporation.

The report further disclosed that the amount remitted to the Federation Account was 33.89 per cent of the total funds deducted to fund Joint Venture (JV) cost recovery in 2018.

Specifically, the report stated that the NNPC earned $$4.053 billion, $1.305 billion and $222.77 million from the export sale of crude oil, gas and other commodities respectively, bringing total sales proceeds receipts to $5.582 billion in 2018, representing an improvement of 57.5 per cent compared with $3.589 billion recorded in 2017.

In addition, the report noted that $4.169 billion was deducted from the total export receipts to fund JV Cost recovery in 2018, compared to $2.647 billion in 2018.

Month-on-month analysis of the NNPC remittances to the Federation Account showed that in January, February, March, April, May and June 2018, the corporation remitted $106.68 million, $127.688 million, $128.785, $124.773 million, $105.17 million and $112.45 million respectively; while $87.95 million, $142.31 million, $38.18 million, $203.95 million, $97.59 million and $137.08 million was remitted by the NNPC in July, August, September, October, November and December 2018.

On the other hand, the report disclosed that the NNPC remitted N851.26 billion to the Federation Account from the domestic sales of crude oil and gas, dropping by 44.01 per cent from N1.52 trillion remitted in 2017.

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Particularly, the report stated that the NNPC earned N1.411 trillion from the domestic sales of crude oil and gas combined, with crude oil sales accounting for N1.298 trillion, while domestic gas sales accounted for N113.172 billion.

From the total domestic sales receipts, the report explained that the NNPC deducted N559.8 billion for JV Cost Recovery, leaving N851.26 billion for remittance to the Federation Account.

Month-on-month analysis of remittances from domestic crude oil and gas sales showed that N79.64 billion, N35.15 billion, N73.02 billion, N74.16 billion, N95.38 billion and N83.84 billion were remitted to the Federation Account from January to June 2018 respectively, while from July to December 2018, N68.97 billion, N58.50 billion, N90.25 billion, N56.44 billion, N87.75 billion and N48.16 billion were remitted respectively.

The NNPC had declared a trading surplus of N81.674 billion for the 2018 financial year, compared to a deficit of N82.004 billion recorded in 2017.

This was driven by revenue of N4.948 trillion, rising by 33.3 per cent from N3.712 trillion recorded in 2017, and expenses of N4.866 trillion, up from N3.794 trillion recorded in 2017.

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