NNPC says N176.48bn spent on petrol subsidy in December
Lagos – The Nigerian National Petroleum Corporation, NNPC, has disclosed that subsidy on the Premium Motor Spirit, PMS, also known as petrol, gulped N176.48 billion in December 2021.
The corporation revealed this in its latest presentation to the Federation Account Allocation Committee, FAAC.
In November 2021, N98.81 billion was spent on petrol subsidy, the NNPC stated.
It said it planned to deduct the cost of the subsidy, which it refers to as underrecovery or value shortfall in its books, from the February oil earnings that is meant to go into the Federation Account, to be shared by the three tiers of government this month.
It said it would be deducting the sum of N242.53 billion, comprising the December subsidy amount, plus outstanding N33.9 billion for year 2021 and the November arrears of N98.81 billion.
“The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38 billion.
“The recovery consists of December 2021 value shortfall of
N176.48 billion plus the outstanding value shortfall recovery of N33.9 billion accrued over the 2021 year. The November 2021 spot arrears of N98.81 billion is also outstanding,” the NNPC stated in the presentation to FAAC.
“The estimated value shortfall of N242.53 billion (consisting of N143.72 billion for January 2022 recovery plus Novem spot arrears of N98.81 billion) is to be recovered from February 2022 proceed due for sharing at the March 2022 FAAC meeting,” it added.
The NNPC has often lamented the burden of petrol subsidy payment on its revenue and the
resultant inability to meeting its obligation to FAAC.
Since last year, the NNPC has resorted to deducting the subsidy costs from the FAAC funds.
For instance, no provision was made for petrol subsidy in the 2021 budget. NNPC said it was forced to bear the subsidy costs, and under what it termed a tough circumstance, resorted to deducting the subsidy funds directly from its FAAC remittances.
In a document last year, NNPC declared its reluctance to remit funds to the FAAC for some months of the year, citing low revenue after removing funds for subsidy.
The corporation allegedly did not remit any funds at the FAAC February 2022 meeting.