Nigeria: NNPC to Deduct N149bn From FAAC As Petrol Subsidy

28 September 2021

Abuja — The Nigerian National Petroleum Corporation (NNPC) has disclosed that it will deduct N149.28 billion spent on petrol subsidy in August, 2021 from its contribution to Federation Account Allocation Committee (FAAC) revenue distributions in the month of October.

The Corporation, in its presentation to the FAAC meeting last week, said it successfully deducted N173.13 billion from its contribution to the FAAC fund as subsidy cost in July but the outstanding N40 billion cost in June will be deducted in subsequent months.

With no provision for petrol subsidy in 2021 Budget, NNPC has resorted to direct deduction from FAAC remittance, which it terms 'value shortfall' in its books.

The NNPC, in the report published yesterday, stated: "The value shortfall of N173,131,639,213.61, for July 2021 was charged. The balance of N40,000,000,000.00 for the June 2021 value shortfall will be deducted in subsequent (months).

"The August, 2021 value shortfall of N149,283,084,869.20 is to be deducted from the September, 2021 proceeds due for sharing at the October, 2021 FAAC meeting".

Meanwhile, NNPC said its overall crude oil lifting in July was 8.71 million barrels (export and domestic crude), an increase of 0.87 percent compared to the 8.66Mbbls lifted in June 2021.

The report added: "Crude Oil export revenue received in August 2021 amounted to $7.78 million equivalent to N2.98 billion.

"Domestic gas receipts in the month was N5.69 billion. Feedstock valued at $64.66 million was sold to NLNG during the period out of which $54.40 million was received during the month. The difference being Modified Carry Arrangement (MCA) obligations, gas reconciliation and Credit Notes. NLNG arrears amounting to $3.09 million was received during the period".

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