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NNPC to deduct N240bn from payment to federation account for subsidy payment

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For the payment of petrol subsidy, The Nigerian National Petroleum Company (NNPC) Limited has disclosed that N242.53 billion will be removed from its contribution to the Federation Account in March.

The NNPC disclosed this in its latest presentation to the FAAC meeting.

According to NNPC the proposed subsidy deduction will be a value shortfall from what it earned in February.

NNPC report said: “The December 2021 value shortfall recovery on the importation of PMS amounted to N210.38bn.

“The recovery consists of December 2021 value shortfall of N176.48bn plus the outstanding value shortfall recovery of N33.9bn accrued over the 2021 year. The November 2021 spot arrears of N98.81bn is also outstanding.

“The estimated value shortfall of N242.53bn (consisting of N143.72bn for January 2022 recovery plus November spot arrears of N98.81bn) is to be recovered from February 2022 proceed due for sharing at the March 2022 FAAC meeting.”

Last month(February) the NNPC remitted no money to FAAC due to its huge fuel subsidy spending and subsequent deduction from the Federation Account.

This led to serious questioning from state governors on the boldness of NNPC.

Read also: Despite inability to run refineries profitably, NNPC bids for Nigeria’s power plants

The Chairman of the Nigeria Governors’ Forum and Governor of Ekiti State, Kayode Fayemi, in his remarks wondered how NNPC was bold enough to declare profit when it had not been meeting its FAAC obligations.

He specifically pointed out that in the last Federation Accounts Allocation Committee meeting in February, the NNPC made zero remittance to the federation.

“We’ve just had the Federation Accounts Allocation Committee meeting a couple of days ago and the NNPC contributed zero to the Federation Accounts this month,” the governor had stated.

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