More pains for states as NNPC withholds N328bn from federal account in April

State governments are set to sink deeper into financial crises as the Nigerian National Petroleum Company (NNPC) Limited has again informed them a deduction of N328 billion will be made on its monthly contribution to the federal account for April 2022.

The development means a lower amount to be shared by FG, states and LGs at the monthly FAAC meeting next month.

NNPC in the first two months failed to contribute a kobo to the federation account despite oil trading at high prices.

Ripples Nigeria in an earlier report captured how governors are piling up debts to run their states.

The management of NNPC’s argument is that most of its revenue was used to pay for Premium Motor Spirit, popularly called petrol.

In its FAAC report for March published on its website, NNPC revealed that in January and February so far N430.165bn has gone into subsidy payment.

The NNPC stated that in January this year the sum of N210.38bn was used to subsidise petrol, while N219.78bn was spent as subsidy in February.

Explaining to the FAAC on the deduction NNPC said, “The estimated value shortfall of N328,004,248,900.01 (consisting of N253,004,248,900.01 for February 2022 recovery plus the balance of November 2021 spot cargo arrears of N75,000,000,000.00) is to be recovered from March 2022 proceed due for sharing at the April 2022 FAAC meeting.”

It further noted that a value shortfall of N219,783,148,011.13 was charged for the month (of March) which comprises of N195,975,376,910.12 for January 2022 plus part of the November 2021 spot cargo arrears of N23,807,771,101.00.

Read also: NNPC releases another 516.4m litres of petrol to Nigerians

In its notes to the March 2022 FAAC executive summary, the oil company stated that the overall NNPC crude oil lifting of 9.94 million barrels (export and domestic crude) in January 2022 recorded 22.26 per cent increase relative to the 8.13 million barrels lifted in December 2021.

It said Nigeria recorded 1.39 million barrels per day production in January 2022, citing the Organisation of Petroleum Exporting Countries (OPEC).

NNPC stated that crude oil export revenue received in February 2022 amounted to $2.73 million, while domestic gas receipts in the month were N13.10bn.

“The sum of N266,527,887,255.56 was the gross domestic crude oil and gas revenue for the month of February 2022.”

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